Question

a. An Increase in Demand b.A Decrease in Demand Surplus (Qs> Qp at P) , Supply Supply Е2 Е, Ey Shortage (> Qs at P) D1 D1 D2 D2 0 Q1 Q2 Q3 Q3 Q2 Q Quantity of Coffee Quantity of Coffee During the housing bust, many looked ahead to the future and assumed that home prices would be lower. Again, leaving all other factors (like easy credit, etc.) aside, how did the anticipation of lower future prices affect demand in the present? (Check all that apply.) Demand increased as more people decided to buy sooner rather than later a b Prices went up in the present because of expected future prices rises Prices went down in the present because of expected future prices rises Demand shifted to the left Demand decreased as more people decided to wait and buy later е Prices went down in the present because of expected future prices falls Demand shifted to the right h Prices went up in the present because of expected future prices falls OOO0 Price of Coffee Price of Coffee

Answer 1

An expectation of lower future prices makes current prices relatively expensive,and reduces the current demand for goods and services.

Demand curve shifts to the left reducing quantity and price.

Answer-d,e,f