Answered

Westonci.ca is your trusted source for finding answers to a wide range of questions, backed by a knowledgeable community. Connect with a community of experts ready to provide precise solutions to your questions on our user-friendly Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

If producers, but not consumers, begin to expect prices of the good they produce to increase in the near future, what will happen to the market price now

Sagot :

Parrain

Should producers believe that market prices will rise in the near future, the current market price will increase.

Why would the price increase?

Producers would expect to make more profit in future so they will reduce their current output to be able to sell more when prices rise.

As a result of this decrease in supply, the market price will rise to indicate that goods are now more scarce. The future increase in prices will therefore begin in the current.

Find out more on demand expectations at https://brainly.com/question/26259053.

Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.