Question

If prices of a good or service are expected to increase in the future, the demand for that good or service will ______ today. If prices are expected to decrease in the future, demand will ______ today. Multiple choice question.

Answer 1

The current demand falls if the prices are likely to increase in the future whereas the current demand rises if prices are likely to decrease in the future.

What is demand?

Demand is one of the market factors that tells about the goods being purchased by the customers.

When the rates of goods are expected to be rise in the future, then the demand for those goods would downfalls. In contrast, the reverse case will make the demand enhancing. The rise or fall in demand also directly affects the supply by the producers.

Therefore, there is an inverse relationship between futuristic prices and the current demand for products.

Learn more about the demand in the related link:

brainly.com/question/10489478

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