If sellers expect the price of beef will rise in the future, the price of beef on today's market
A) rises and quantity demanded decreases.
B) falls and quantity supplied increases.
C) falls and quantity demanded increases.
D) rises and quantity supplied decreases.
E) falls and quantity demanded decreases.

Question

Quizplus · Accepted Answer

If sellers expect the price of beef to rise in the future, they may hold back supply to sell at higher future prices, causing the current price to rise and the quantity demanded to decrease due to the higher price.

If Sellers Expect the Price of Beef Will Rise in the Future