Question

If there is expectation about rise in price in future then present supply
(A) Increases
(B) Decreases
(C) Remain constant
(D) Become zero​

Answer 1

Answer:

If sellers expect a higher price, then supply decreases. If sellers expect a lower price, then supply increases. Sellers' expectations are one of five supply determinants that shift the supply curve when they change. ... If they expect the price to rise in the future, they are inclined to sell less now.