Question

Econ

Answer 1

Answer:

B. Demand will increase before the price rises.

Explanation:

If the consumers expect the price of product will soon rise, they will  want to accumulate that product at present time while the price is still low. This cause the average demand for the product will start to increase.

But, by the time the time the price of the product increased, there will be less people that can afford to purchase that product like they used to. This is the point where the average demand will started to fall down again.