If both buyers and sellers expect the price of a commodity to rise in the future,it is likely that supply will ________ and demand will ________.
A) increase;decrease
B) decrease;increase
C) increase;increase
D) decrease;decrease
E) be constant;be constant

Question

Quizplus · Accepted Answer

If both buyers and sellers expect the price to rise, sellers may hold back supply to sell at a higher price later, decreasing current supply. Buyers may purchase more now to avoid higher prices later, increasing current demand.

If Both Buyers and Sellers Expect the Price of a Commodity