How does producers expectation of a price fall ... - WAEC Economics 2016 Question
How does producers expectation of a price fall affect the supply curve of a product? There will be
A
a moment along the curve
B
a leftward shift
C
no shift of the supply curve
D
a shift to the right
correct option: d
If sellers expect that the price of the good will be decreasing in the future, then they are likely to sell more today. This causes an increase in supply and a rightward shift of the supply curve.
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