If Consumers Expect Future Prices to Be Higher

question 44

Multiple Choice

If consumers expect future prices to be higher:

• A) they substitute current purchases for future purchases of perishable products.
• B) stockpiling will happen when products are durable.
• C) the position of the demand will not change.
• D) the demand for automobiles today will not change.

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Definitions:

Hemophilia

A genetic disorder that impairs the body's ability to make blood clots, leading to excessive bleeding.

Recessive Gene

A gene that produces its characteristic phenotype only when its allele is identical, as opposed to a dominant gene which can express its phenotype over a different allele.

Albinism

A genetic condition characterized by the absence of melanin pigment in the skin, hair, and eyes, resulting in light coloring and increased sensitivity to sunlight.

Recessive

A type of gene that generally does not manifest in the presence of a dominant gene; it requires two copies (one from each parent) for the trait to be expressed.