d: Jan 20 at 3:35pm iz Instructions you open the exam you will have 80 minutes t
ID: 1146591 • Letter: D
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d: Jan 20 at 3:35pm iz Instructions you open the exam you will have 80 minutes to complete the exam .as long as you e 4:40 pm. Exam will close at noon Question 27 5 pts During the Christmas shopping season, both buyers and sellers expect prices to fall significantly after December 25. Using demand and supply analysis, explain what impact this expectation has on the market in the weeks approaching Christmas, compared to what would happen if buyers and sellers did not have these expectations about future prices. HTML Editor ParagrExplanation / Answer
Current demand should decrease and current supply should increase, based on this expectation of a reduction in future price. This should lead the current price to fall, although what will happen to overall sales volume is inconclusive. This trend has some support in recent years as retailers have been acceleration their discounting ahead of the post-Christmas shopping season.
the people expect that the price is growing to fall after Christmas they will postpone any purchasing activity till Christmas this will cause the demand to fall in the market. Now we have constant supply goods and the demand for them is declining this will cause the price to fall well before the week of Christmas.
if the buyers and sellers don't have any such expectations about the market price the prices will not fall before Christmas.As the people didn't expect the price to fall after Christmas they will continue to purchase goods as always they will keep a constant demand and supply in the market keeping the price stable.
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