Answer to Question #143442 in Economics for Aza

Question

Keeping the present rate of inflation (increase in the general price level) in mind, consumers living in Karachi are anticipating that the price of tomatoes will go up just like it did last year in November. In your opinion explain if there would be any impact on the current demand for tomatoes or not. Also, if there would be any change elucidate the movement or shift in the demand curve graphically.

Answer 1

If consumers living in Karachi are anticipating that the price of tomatoes will go up just like it did last year in November, then the current demand for tomatoes will increase, and the demand curve will shift to the right.