If a Firm Expects That the Price of Its Product

question 70

Multiple Choice

If a firm expects that the price of its product will be lower in the future than it is today

• A)the firm has an incentive to increase supply now and decrease supply in the future.
• B)the firm has an incentive to decrease supply now and increase supply in the future.
• C)the firm has an incentive to increase quantity supplied now and decrease quantity supplied in the future.
• D)the firm will not change supply until it knows for certain what will happen to its price.

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Definitions:

Brain

The central organ of the human nervous system, responsible for processing sensory information, regulating vital functions, and enabling cognition and emotional responses.

Hemp Plant

A variety of the Cannabis sativa plant species that is grown specifically for industrial use, including textiles, biodegradable plastics, and health products.

Marijuana

A mind-altering substance derived from the Cannabis plant, utilized for either medicinal or leisure activities.

THC

Tetrahydrocannabinol, the psychoactive compound found in cannabis that is responsible for its mind-altering effects.