Suppose Consumers Expect the Price of a Good to Be

question 99

Short Answer

Suppose consumers expect the price of a good to be higher in the future than it is today. Would the current demand for the good increase or decrease?

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Definitions:

Displacement

In psychoanalytic theory, a defense mechanism where the mind substitutes either a new aim or a new object for goals felt in their original form to be dangerous or unacceptable.

Defense Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and to cope with reality or maintain self-image.

Projection

A defense mechanism where individuals attribute their own unacceptable thoughts, feelings, or motives to another person.

Repression

A defense mechanism where unpleasant thoughts, feelings, or desires are unconsciously pushed out of conscious awareness.