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

C

Explanation:

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

This is so because of the fright of inflation of prices. When consumers are able to predict, or see through an impending inflation in prices of goods, then the consumers rush to buy as much of the said goods as possible, which directly leads to an increase in the demand for the said goods.

And thus, we can see that the expectations of consumers has a direct influence on the demand for goods and services.

C. Demand rises when consumers expect a product's price to rise in

the future.

Explanation:

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