Question Bank by Edumentors

Can you explain how a change in consumers' expectations of future prices might shift the demand curve, and provide a real-world example?

Consumers' expectations of future prices can influence current demand. If consumers expect prices to rise in the future, they might buy more of the product now, shifting the current demand curve to the right. Conversely, if they expect prices to fall, they might buy less now, shifting the demand curve to the left. A r