If some piece of information causes buyers to expect the price of a good to rise in the future,but sellers take the same information and believe it will have no impact on price,the result is
A) a decrease in supply today
B) an increase in supply today
C) a decrease in quantity demanded today
D) an increase in demand today
E) an increase in quantity demanded today

Question

Quizplus · Accepted Answer

When buyers expect prices to rise in the future, they are likely to increase their demand today to avoid paying higher prices later. Sellers, believing the information will not impact prices, do not change their supply, leading to an increase in demand today.

If Some Piece of Information Causes Buyers to Expect the Price