If a seller expects prices to rise in the future the quantity supplied will increase today. the supply will increase today. there will no change in the seller's actions today. it will stock up today and sell the goods when the price rises.
Added by Sarah C.
Close
Step 1
Step 1: If a seller expects prices to rise in the future, they will likely hold onto their goods and wait to sell them when the price is higher. Show more…
Show all steps
Your feedback will help us improve your experience
Haricharan Gupta and 91 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
When the price of a product rises, the increase in quantity supplied will generally be greater in the long run than the short run because
Haricharan G.
When sellers expect the price of bricks to rise in the future, today in the market for bricks A the equilibrium price will rise as the supply curve shifts leftward B the equilibrium price won't change but the demand curve will shift leftward C we will move along the supply curve but the equilibrium price won't change D the equilibrium price will rise as we move rightward along the supply curve
Lottie A.
Three months ago the price of a good was $\$ 4$ and the quantity supplied was 200 units. Today the price is $\$ 6,$ and the quantity supplied is 400 units. Did the quantity supplied rise because the price increased, or did the price rise because the quantity supplied increased?
Andrew D.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD