An Expected Increase In The Price Of Automobiles Will Lead To?
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A. a reduction in the demand for gasoline today.
B. an outward shift in demand for automobiles today.
C. no predictable impact on today’s demand for automobiles.
D. a movement down the demand schedule for automobiles.
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B. an outward shift in demand for automobiles today.
If customers will really believe this expectation then it might temporary become self-fulfilling due to incentives to save money and avoiding to purchase for higher price in future.
Though effect will be only short-run causing shifts in demand latency.