Asked by Writes Wanderlust on Jul 21, 2024

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The market demand for most goods will

A) increase if the prices of substitutes fall.
B) decrease if the price of complementary goods fall.
C) increase if consumers expect prices to be higher in the future.
D) decrease if consumers expect the goods to become less available.

Market Demand

The total quantity of a good or service that all consumers are willing to purchase at a given price over a specified period.

Complementary Goods

Products or services that are typically used together, where the use of one enhances the use or value of the other.

Substitutes

Goods or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.

  • Analyze the impact of changes in consumer expectations, incomes, and prices on market demand.
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Verified Answer

BE
Bruce ErvinJul 26, 2024
Final Answer :
C
Explanation :
When consumers expect prices to be higher in the future, they are more likely to purchase goods now to avoid paying a higher price later, thus increasing current demand.