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If Both Producers and Consumers Believe That a Product's Price

Question 55

Multiple Choice

If both producers and consumers believe that a product's price will rise in the future, then in the present, the equilibrium price


A) might rise, fall or not change, but the change can never be predicted.
B) might rise, fall or not change depending on whether the effect from the producers is greater or less than the effect from the consumers.
C) falls.
D) rises.
E) does not change.

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