Suppose both buyers and sellers of paper towels expect the price of paper towels to fall next month. As a result, the current price of paper towels:
|
May rise, fall, or remain unchanged |
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|
Remains unchanged |
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|
Falls |
|
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Rises |
Answer
option 3
Falls
the price is going to fall means consumer postponed their
consumption which decreases demand and that will decrease price and
quantity both
the sellers want to sell most of it now so the supply increases
which increases the quantity and decreases price.
in total in both the effect the price decreases for now so the
price will fall.
Suppose both buyers and sellers of paper towels expect the price of paper towels to fall...