Answer to Question #24580 in Microeconomics for saad
A. P* up, Q* down
B. P* up, Q* up
C. P* down, Q* down
D. P* down, Q* up
E. A movement to the right along the demand curve.
Change in expectations about the future will affect demand. Optimism or pessimism about the future direction of the economy, including expected natural disasters and inflation, can affect the spending patterns of consumers. When consumers expect the price of a good to rise or fall, those expectations will affect their current spending, thus affecting demand for the good.
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