Final answer:
Unexpected inflation can affect sellers positively if their long-term contracts include provisions for prices to automatically adjust based on inflation, ensuring they receive a real price. Without such provisions, inflation can cause market disequilibrium and weaken economic incentives.
Step-by-step explanation:
Unexpected inflation affects sellers in various ways, particularly when it comes to long-term business contracts. If contracts contain provisions that allow prices to adjust automatically according to inflation, this can be beneficial for sellers. It means they are not trapped into a low nominal selling price if the rate of inflation is higher than what was initially expected. This adjustment ensures they receive a real price which accounts for the actual buying power of the currency, instead of a nominal price that doesn't reflect inflation's impact. Alternatively, without such provisions, high and variable inflation may disrupt market equilibrium, lead to surpluses or shortages, and weaken the incentive structure in the economy.