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?

---

Definitions:

Investments

Assets purchased with the aim of generating income or appreciating in value over time, such as stocks, bonds, or real estate.

Disclosures

These are notes in financial statements that provide additional insight into the presented figures, accounting policies, and other relevant information.

Held to Maturity

A classification of debt securities that a company intends and is able to hold until they mature.

Market Price

The current price at which an asset or service can be bought or sold.