An Expected Future Increase in the Price of Bananas May

question 262

Multiple Choice

An expected future increase in the price of bananas may

• A) increase the demand for bananas now.
• B) decrease the demand for bananas now.
• C) increase the supply of bananas now.
• D) make bananas an inferior good.

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Definitions:

Allocation Of Resources

Allocation of resources refers to the process of distributing available resources among various competing needs and uses in an economy to maximize efficiency and welfare.

Public Interest

The welfare or well-being of the general public, often used as a guideline for determining policy related to law, governance, and community health.

Central Planners

Individuals or groups responsible for coordinating economic activities and decisions in a centrally planned economy.

Market System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, and prices are determined in a free price system.