If buyers expect the price of a good to fall in the near future, we would expect that to cause the current price and the quantity traded to increase as a result.

Question

Quizplus · Accepted Answer

If buyers expect the price of a good to fall in the near future, they would delay their purchase, which would cause a decrease in current demand and a decrease in the current price. Therefore, the current price and quantity traded would not increase, but actually decrease.

If Buyers Expect the Price of a Good to Fall