Final answer:
The relationship between price expectations and demand is positive; when future prices are expected to rise, current demand will rise.
Step-by-step explanation:
The relationship between price expectations and demand is c) positive; when future prices are expected to rise, current demand will rise.According to the law of demand, there is an inverse relationship between price and quantity demanded. When the price of a good or service rises, the quantity demanded typically decreases, and when the price falls, the quantity demanded increases. However, when it comes to price expectations, if people expect future prices to rise, they tend to increase their current demand, anticipating higher prices in the future.For example, if people expect the price of coffee to increase in the future, they may buy more coffee now to avoid paying higher prices later. This shift in demand is represented by a rightward shift of the demand curve.