If both buyers and sellers expect the price of a commodity to fall in the future, it is likely that the market clearing price ________ and the equilibrium quantity ________
A) will fall, cannot be predicted
B) will rise, cannot be predicted
C) cannot be predicted, will fall
D) cannot be predicted, will rise
A
Economics
You might also like to view...
Which of the following would be most likely to increase the demand for downtown parking in a large city?
a. improved bus service to the downtown area b. lower downtown parking fees c. more downtown parking lots d. more freeways leading to the downtown area e. a major employer moves to the suburbs
Economics
A $25 government subsidy paid directly to buyers of jeans will result in
a. a downward shift in the demand curve for jeans by $25. b. an upward shift in the demand curve for jeans by $25. c. a downward shift in the supply curve for jeans by $25. d. an upward shift in the supply curve for jeans by $25.
Economics