Answer:
A. Equilibrium quantity will increase; the effect on price is ambiguous.
Explanation: Several factors are known to be having impact on the Quantity demanded and the price of goods sold,one of the factors includes when Consumers speculate that the price of goods and services will increase or decrease in the future.
WHEN PEOPLE SPECULATE THE THE PRICE OF APPLE PIES WILL INCREASE IN THE FUTURE,THEY WILL ENGAGE IN PANIC BUYING WHICH WILL INCREASE THE QUANTITY DEMANDED AND THE EFFECT ON PRICE WILL BE AMBIGUOUS.
Answer:
1. Economics - The social science concerned with how individuals, institutions, and society make optimal (best) choices under conditions of scarcity.
2. Opportunity cost - The next-best thing that must be forgone in order to produce one more unit of a given product.
3. Marginal analysis - Making choices based on comparing marginal benefits with marginal costs.
4. Utility - The pleasure, happiness, or satisfaction obtained from consuming a good or service.