Answer to Question #196623 in Microeconomics for selina

Question

suppose the market for almonds is in equilibrium. consumers are expecting that the price of almonds will increase in future in the market. if all other variable are held constant, what would you expect for the new price and quantity of almonds ?

Answer 1

with increase in price in future, this will spike a rise in price currently. This will be as a result of high demand from the consumers due to fears of the rising cost of almonds. the supply of almonds will therefore decrease as a result of this high current demand for almonds by consumers.