Asked by Chelsey Wheatley on May 12, 2024
Verified
When suppliers of a good that can be easily stored expect its price to increase in future,they will reduce its current supply.
Easily Stored
Refers to items or data that can be kept or archived with minimal effort or resources.
Current Supply
The total amount of a particular good or service available to consumers at the current time.
- Understand the impact of expectations on supply behavior.
Verified Answer
SP
Sudip PandeyMay 15, 2024
Final Answer :
True
Explanation :
Suppliers might withhold some of their current supply from the market if they anticipate higher prices in the future, aiming to maximize profits by selling at those higher prices later.
Learning Objectives
- Understand the impact of expectations on supply behavior.