THIS USER ASKED 👇

Question 5 of 10

Which statement best summarizes how consumer expectations affect
demand for a product?
A. Demand rises when consumers expect a product to have
complementary goods.
B. Demand falls when consumers expect a product’s supply to
decline in the future.
C. Demand rises when consumers expect a product’s price to rise in
the future.
D. Demand falls when consumers expect a product to set an
equilibrium price.
ECON

THIS IS THE BEST ANSWER 👇

C.

Explanation:

Demand rises when consumers expect the price of a product to rise in the future.

This is because of the fear of price inflation. When consumers are able to predict, or see through, forthcoming inflation in prices of goods, then consumers do their best to buy as many of those goods as possible, which directly leads to an increase in demand. on those goods.

Thus, we can see that consumer expectations have a direct impact on the demand for goods and services.