Question

If a seller expects the price of a good to rise in the future, the seller will

a. place these goods on the market immediately.
b. increase production of the good.
c. store these goods until the price goes up.
d. increase the price of the good now.

Answer 1

i took the test the answer is C store these goods until the price goes up.

while increaseing production sounds like a good idea its better to save it and sell for a higher price

Answer 2

a. place these goods on the market immediately.
-no, this is not a good strategy, since they would sell it now for less

b. increase production of the good.
-this is a very good idea: this means that when the time comes, they can sell a lot of the product! I think that this the the best answer.

c. store these goods until the price goes up.
-if they can't produce more of it, this would be a good idea but it would be even better if they could produce more rather than store!

d. increase the price of the good now.
-not a good idea! this would just make people choose the competition.