The expectation by producers that the future price of their product will be lower than it is currently will likely cause what immediate change in the market?
Explanation
This question tests the impact of producer expectations about future prices on the current supply of a good.
Other questions
What is the definition of demand in economics?
According to the law of demand, what is the relationship between price and quantity demanded?
What does the income effect indicate in the context of the law of demand?
How is a market demand curve derived from individual demand curves?
What is the distinction between a 'change in demand' and a 'change in quantity demanded'?
Which of the following would be considered a determinant of demand, causing the demand curve to shift?
If a rise in income causes the demand for a product to increase, how is that product classified?
If the price of Häagen-Dazs ice cream rises, and as a result, the demand for Ben and Jerry's ice cream increases, what is the relationship between the two goods?
What does the law of supply state about the relationship between price and quantity supplied?
Which of the following is considered a primary determinant of supply, causing the entire supply curve to shift?
What is the equilibrium price in a competitive market?
In the market for corn, if at a price of $4 per bushel, sellers wish to sell 10,000 bushels and consumers want to buy only 4,000 bushels, what is the result?
What is the rationing function of prices in a competitive market?
If an increase in the supply of a good occurs while the demand for it remains constant, what will be the effect on equilibrium price and quantity?
When both the supply and demand for a good increase, what is the certain effect on the market equilibrium?
What is the definition of a price ceiling, and what is its typical intended purpose?
If the government imposes an effective price ceiling on gasoline, what is the direct consequence in the market?
What is a price floor, and what is its typical intended purpose?
What is the direct market consequence of the government imposing an effective price floor on wheat?
When the market for a product achieves allocative efficiency, what is the relationship between the marginal benefit and marginal cost?
In a market for corn with three buyers, Joe, Jen, and Jay, their individual quantities demanded at a price of $3 per bushel are 35, 39, and 26 bushels per week, respectively. What is the total market quantity demanded per week at this price?
If a devastating earthquake destroys numerous production facilities for a product, how would this event be represented on a supply and demand graph?
If a government grants a subsidy to the producers of a good, how does this affect the supply curve?
What is the primary reason that the supply curve for most products is upward-sloping?
If the price of lettuce is currently above its equilibrium price, what will occur in the market?
A legal market for human organs is proposed. If this market were established, and it resulted in an upward-sloping supply curve, what would be the effect compared to the current system of a fixed supply of donated organs?
If both supply decreases and demand decreases for a specific good, what is the certain effect on the equilibrium?
In the market for corn, the demand schedule for a single consumer shows that at a price of $5 they will buy 10 bushels, and at a price of $1 they will buy 80 bushels. This illustrates what principle?
If a new technology improves the efficiency of extracting copper from ore, how will this affect the supply curve for copper?
If the price of gasoline is set below the equilibrium level by a price ceiling, what is a likely secondary consequence?
In the market for corn, the equilibrium price is $3 and the equilibrium quantity is 7,000 bushels. What happens if the price is set at $2?
If a change in consumer tastes leads to a greater preference for salsa, what is the impact on the salsa market, assuming supply remains constant?
If an increase in the number of firms producing a good leads to a rightward shift of the supply curve, what is the effect on the market, assuming demand is constant?
Why do black markets often emerge when there is a binding price ceiling?
If a producer can sell 12,000 bushels of corn at a price of $5 per bushel, or 10,000 bushels at $4 per bushel, how does the surplus or shortage change between these two prices given that demand is 2,000 at $5 and 4,000 at $4?
What is meant by the term 'productive efficiency' in a competitive market?
If a new scientific study reveals that eating oranges reduces the risk of cancer, how would this likely affect the market for oranges?
In the appendix discussing the market for pink salmon, what happened to supply and demand over several decades?
Why do shortages or surpluses tend to be more likely with preset prices, such as for event tickets, than with flexible prices?
If a market has a preset ticket price of $45, the quantity demanded is 70,000, and the stadium capacity (quantity supplied) is 60,000, what will be the result?
The price of corn syrup, a key ingredient in soft drinks, rises sharply. What is the likely effect on the market for soft drinks?
What is the substitution effect as it relates to the law of demand?
If a government imposes a new per-unit tax on the producers of a good, what is the effect on the supply curve?
In the case of an increase in demand and a decrease in supply for a good, what is the certain outcome on equilibrium?
Suppose a single producer's supply schedule for corn shows they will supply 5 bushels at $1, 20 bushels at $2, and 35 bushels at $3. If there are 200 identical producers in the market, what is the total market quantity supplied at a price of $3?
If a government price floor for wheat is to be effective, where must it be set?
If a government price ceiling for rent is effective, it will likely lead to which of the following?
When a market is in equilibrium, which of the following is true?
In the appendix discussing the market for sushi, what combination of shifts in supply and demand could lead to an increased quantity but a relatively constant price?