What happens when the price of a good increases?

An increase in the expected future price of a good will cause the current demand for the good to: a.decrease, which is a shift to the left of the demand curve. b.decrease, which is a shift to the right of the demand curve.

How does the expected future price of a good affect demand?

A rise in the expected future price of a good increases the current demand for that good. A fall in the expected future price of a good decreases current demand for that good. Normal Good a good for which the demand increases if income increases and demand decreases if income decreases

What is the relationship between price and demand?

If a buyer expects the price of a good to go down in the future, they hold off buying it today, so the demand for that good today decreases. On the other hand, if a buyer expects the price to go up in the future, the demand for the good today increases. Explore the role of buyers' expectations as a determinant of demand in this video.

What happens if a buyer expects the price to go down?

If a buyer expects the price of a good to go down in the future, they hold off buying it today, so the demand for that good today decreases. On the other hand, if a buyer expects the price to go up in the future, the demand for the good today increases.