Question

How do consumer expectations affect the demand for a product?

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A. By connecting demand for a good to the availability of
complementary goods
B. By increasing the demand for goods expected to become more
expensive later
C. By reducing the supply of a good as demand for the good
increases over time
D. By lowering the good's equilibrium price to better reflect growing
consumer demand

Answer 1

Consumer expectations affect the demand for a product by influencing consumers' desire and willingness to purchase it.

Step-by-step explanation:

Consumer expectations play a significant role in affecting the demand for a product. When consumers have high expectations about a product, they are more likely to demand it, leading to an increase in demand. On the other hand, if consumers have low expectations or negative perceptions about a product, demand may decrease.

For example, if a new smartphone is highly anticipated and expected to have advanced features, consumers may eagerly wait to purchase it, resulting in high demand. Conversely, if consumers expect a product to become obsolete quickly or have poor quality, demand may be lower.

In summary, consumer expectations can impact demand for a product by influencing consumers' desire and willingness to purchase it.

Answer 2

B. By increasing the demand for goods expected to become more expensive later

Step-by-step explanation: