if sellers anticipate the price of their product will decrease, then ake Test: E

Question

if sellers anticipate the price of their product will decrease, then ake Test: Exam 6 Test Intormation DescriptionRespondus s This test allows 2 attempts This is attempt number 1 n be saved and resumed later ing Changes to the answer after submission are prohibited à Moving to the next question prevents changes to this answer stion 3 If sellers anticipate the price of their product will decrease, then: They will reduce how much they are willing and able to produce and sell today, shifting the supply curve out and to the right They will reduce how much they are willing and able to produce and sell today, shifting the supply curve in and to the left They wit meres-chno much they are willing and able to produce and sell today, shifting the supply curve out and to the right They will increase how much they are willing and able to produce and sell today, shifting the supply curve in and to the left They will increase how much they are willing and able to produce and sell in the future, shifting the future supply curve out and to the right

Explanation / Answer

Answer (c) Firms supply higher quantities at higher prices because of increased chances of profits. So if the sellers expect future prices to fall, they try to sell as much as possible today itself so that they earn higher profits. If the sellers anticipate that their product price will decrease then they will increase how much they are willing to produce and sell toady, thereby shifting the supply curve out and to the right

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