What Is the Effect of Consumers' Expecting That the Future

question 59

Multiple Choice

What is the effect of consumers' expecting that the future price of a product will increase?

• A)It will cause an increase in the quantity demanded.
• B)It will cause an increase in demand.
• C)It will cause a decrease in demand.
• D)It will cause a decrease in the quantity demanded.
• E)It will cause a decrease in supply.

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Definitions:

Information Search

The process consumers undertake to gather information about products or services to make informed purchasing decisions.

Consumer Demand

The desire and willingness of consumers to purchase goods or services at a given price, which influences market dynamics and business decisions.

Wants

Desires or wishes that are not essential for basic survival but are sought for pleasure, comfort, or luxury.

Ability

The possession of the means or skill to do something.