If People Believe That Prices Are Going to Be Higher

question 5

Multiple Choice

If people believe that prices are going to be higher in the future then they are today, they will

• A)wait until the future to purchase the things they wand
• B)decrease their demand now
• C)increase their demand now
• D)increase their supply now
• E)save more today so they have the income to buy more in the future

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Definitions:

Factory Overhead

All the costs associated with operating a factory that are not directly tied to specific units of production, such as utilities, maintenance, and salaries of non-production staff.