In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. Consumer expectations that the price of X will rise sharply in the future will:
A. increase D, decrease P, and increase Q.
B. increase D, increase P, and increase Q.
C. increase S, increase P, and increase Q.
D. decrease S, increase P, and increase Q.
Answer: B
Economics
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a. TR - G - T b. Y - C - T + TR c. Y + C + T + TR d. T - G - TR
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