Multiple Choice
What happens in the market for blenders if consumers decide that juicing their vegetables is better than blending their vegetables?
3. The Market Forces of Supply and Demand
Shifts in the Demand Curve
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
What happens in the market for beef jerky if customers expect a price increase in the future?
A
Demand shifts to the left
B
Demand shifts to the right
C
Supply shifts to the left
D
Supply shifts to the right
Verified step by step guidance1
Understand the concept of expectations: When consumers expect the price of a good to increase in the future, they are likely to purchase more of it now to avoid paying a higher price later.
Analyze the demand side: If consumers expect a future price increase, the current demand for beef jerky will increase as consumers try to buy more before the price goes up.
Determine the direction of the demand shift: An increase in current demand due to future price expectations will cause the demand curve to shift to the right.
Consider the supply side: The problem does not provide information about changes in production costs or technology, so the supply curve remains unchanged in this scenario.
Conclude the market effect: The primary effect of consumers expecting a future price increase is a rightward shift in the demand curve, leading to a higher equilibrium price and quantity in the current market.
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