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What effect do consumer expectations have on the demand for a good?

What effect do consumer expectations have on the demand for a good?-example-1

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they reduce demand for products expected to become cheaper in the future

Step-by-step explanation:

User Frank Eno
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Answer:

A. They reduce the demand for products expected to become cheaper in the future.

Step-by-step explanation:

Consumer expectations of what the price of a good would be in the future, can significantly determine the extent to which the demand of such good would be demanded.

Hypothetically, if consumers expect the price of electronics products to be cheaper by the end of this year, the current demand for electronics products would decrease for now, as consumers would rather hold on purchasing such products till end of the year, when the prices would be cheaper.

Therefore, the effect that consumer expectations have on the demand for a good is:

A. "They reduce the demand for products expected to become cheaper in the future."

User Jan Zerebecki
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