Final answer:
If both producers and consumers expect the price of a product to fall in 2021, it would result in a decrease in the equilibrium price (P) and quantity (Q) today.
Step-by-step explanation:
In economics, if both producers and consumers expect the price of a product to fall in 2021, it would have an impact on the equilibrium price (P) and quantity (Q) in the market. Based on the given information that a rise in price from $70 to $80 leads to a decrease in quantity demanded from 2,800 to 2,600, we can infer that there is an inverse relationship between price and quantity demanded.
When both producers and consumers anticipate a lower price in the future, it would lead to a decrease in the current quantity demanded because consumers might postpone their purchases, hoping to buy at a cheaper price later. This shift in demand results in a decrease in the equilibrium quantity (Q) in the market.
Additionally, producers may also decrease their current supply due to the expected decrease in price, leading to a decrease in the equilibrium quantity (Q) as well. Therefore, both the producers and consumers' expectation of a price decrease in 2021 would result in a decrease in the equilibrium price (P) and quantity (Q) today.