Question

explain consumers expectations about future price​

Answer 1

A critical reference price is the expectation of future price. That is, consumers compare sticker price with expected future price. Higher (lower) ex- pected future price encourages (discourages) current purchase.

Answer 2

consumption in period t + s. that a critical reference price is the expectation of future price. That is, consumers compare sticker price with expected future price. Higher (lower) ex- pected future price encourages (discourages) current purchase.