Final answer:
When consumers expect future price rises, they are likely to increase their present demand, leading to a rightward shift of the demand curve on a graph.
Step-by-step explanation:
If consumers believe that prices for a product will be rising in the future, it is likely to lead to an increase in present demand for the product. This behavior is based on the expectation of future price increase which propels consumers to purchase more of the product now rather than wait for a higher price in the future. Graphically, this can be shown by a rightward shift of the demand curve. The original demand curve, D0, will shift to a new position, D1, indicating a higher quantity demanded at every price level.
Graphical Representation
To show this graphically, start with the original demand curve on a graph with price on the vertical axis and quantity on the horizontal axis. If consumers anticipate higher future prices, they will buy more now, thus shifting the entire demand curve to the right, from D0 to D1. This rightward shift indicates an increase in demand at the current price levels, even before the actual price change occurs.