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    Macroeconomics Principles Study Set 1
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    Exam 3: Supply and Demand
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    Suppose Suppliers Expect the Market Price to Fall in the Future
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Suppose Suppliers Expect the Market Price to Fall in the Future

Question 225

Question 225

Essay

Suppose suppliers expect the market price to fall in the future. How might the expectation become a self-fulfilling prophecy?

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If sellers believe that price will fall ...

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