If both producers and consumers believe that a product's price will rise in the future, then at the present, the equilibrium price
A) does not change.
B) rises.
C) falls.
D) might rise, fall, or not change, but the change can never be predicted.
E) might rise, fall, or not change depending on whether the effect from the producers is greater than or less than the effect from the consumers.
B
You might also like to view...
A legitimate concern about illegal immigration is that it:
A. Tends to lead to higher product prices B. Has a negative fiscal impact on local and state governments C. Causes a one-for-one reduction in employment for legal residents D. Causes the average wage level in the U.S. to fall
When an economy experiences a recession there is
A) a rightward shift of the short-run Phillips curve. B) a leftward shift of the short-run Phillips curve. C) no change in the short-run Phillips curve. D) a downward movement along the short-run Phillips curve. E) an upward movement along the short-run Phillips curve.
What is an externality? How are positive externalities different from negative externalities?
What will be an ideal response?
In the textbook model of endogenous growth, long-run output growth would decline if there were either a ________ in the saving rate or a ________ in the depreciation rate
A) rise; rise B) rise; fall C) fall; rise D) fall; fall