Question

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

A. They increase demand for products that have complementary
goods.
B. They reduce demand for products with a consistent equilibrium
price.
C. They increase demand for products in markets with a small
number of consumers.
D. They reduce demand for products expected to become cheaper in
the future.

Answer 1

D. They reduce demand for products expected to become cheaper in

the future.

Step-by-step explanation:

Answer 2

Option D is correct

Step-by-step explanation:

If a buyer expects that the price of a good will decrease in the future, they stop or decrease the purchasing of that good today. A a result, the demand for that good today decreases. On the other hand, if a buyer expects that the price of the good will increase in the future, the demand for the good increases.

Option D. is correct.