Final answer:
When consumers expect the price of a product to go down in the future, it can lead to a decrease in current demand and an increase in the consumption of substitute products.
Step-by-step explanation:
When consumers expect the price of a product to go down in the future, it can affect their decisions today in a couple of ways.
First, it can lead to a decrease in current demand as consumers may choose to postpone their purchase in anticipation of a lower price. For example, if a person is planning to buy a new smartphone but expects the price to drop next month, they might decide to wait and make the purchase later.
Second, it can also impact the consumption of substitute products. If consumers believe that the price of one product will decrease, they may choose to consume more of its substitutes in the meantime. For instance, if the price of oranges is expected to fall, people might buy more apples instead.