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the higher the expected future price of product, the higher the current demand for that product and vice versa. for example, when government plans to increase the price of sugar the following week, the demand for sugar will immediatelly increase because consumer want to store for future use because of the expected higher price. if consumer expect the price cars to fall next year, the present demand for cars this year will decrease since consumer will wait for the price to fall.
What else can I help you with?
How do future expectation about the price of a good affect the present supply?
If the price is expected to increase, many producers will hold onto their supply.
What is the difference between rational expectation and adaptive expectation?
Rational expectation are expectation formed by individuals based on past experience and on their predictions about the effects of present and future policy actions. Adaptive expectations are based only on the past and expected inflation changes slowly. by marowe f.m.
Define price expectation elasticity of demand?
Expectation elasticity of demand mean if in future the price will rise then in present the demand of that comm. will fall i.e elasticity will be +ve.. n vice versa..., RELATIONSHIP OF EXPECTION OF PRESE WITH THAT COMMODITY Expectations about future price rise or fall is directly related with present or a recent demand i.e if prise rise in future, the demand will rise 4 that comm. n vise versa....
What is 22 gm kdm gold price?
The price of gold changes even in seconds so it is hardly to fix the rate in this answer for the future.
What would cause an increase in aggregate demand in the short run?
if decrease a price or if the expectation of raising a price
How do future expectation about the price of a good affect the present supply?
If the price is expected to increase, many producers will hold onto their supply.
What is the difference between rational expectation and adaptive expectation?
Rational expectation are expectation formed by individuals based on past experience and on their predictions about the effects of present and future policy actions. Adaptive expectations are based only on the past and expected inflation changes slowly. by marowe f.m.
Define price expectation elasticity of demand?
Expectation elasticity of demand mean if in future the price will rise then in present the demand of that comm. will fall i.e elasticity will be +ve.. n vice versa..., RELATIONSHIP OF EXPECTION OF PRESE WITH THAT COMMODITY Expectations about future price rise or fall is directly related with present or a recent demand i.e if prise rise in future, the demand will rise 4 that comm. n vise versa....
What is 22 gm kdm gold price?
The price of gold changes even in seconds so it is hardly to fix the rate in this answer for the future.
What is market speculation?
Market speculation is purchasing a security instrument with the expectation that it will go up in value in the future. The idea of market speculation is to buy at a low price and sell at a higher one later.
What would cause an increase in aggregate demand in the short run?
if decrease a price or if the expectation of raising a price
What is the Ticker symbol for a barrel of crude oil?
the ticker symbol you are looking for oil for would be something like this: = CLQ09.NYM (that is for crude oil aug/09). = http://finance.yahoo.com/futures?t=energy On the NY Mercantile Exchange (NYMEX) you can see the quoted price of a barrel of oil for delivery in a future month. These prices are often different that the spot price and reflect the market's current expectation of future price changes. You're probably just interested in the number that is in the news each day which is best viewed at http://www.bloomberg.com/energy/
What is expectation and past experience?
Expectation is a belief or anticipation about what will happen in the future. Past experience refers to the knowledge and memories gained from previous events or interactions. Expectations can be influenced by past experiences, as they shape our understanding and predictions of future outcomes.
Can you explain how future contracts work in the financial market?
Futures contracts are agreements to buy or sell assets at a set price on a future date. They allow investors to speculate on price movements and hedge against risk. Traders can profit from price changes without owning the underlying asset.
How can one effectively short treasuries in the financial market?
One can effectively short treasuries in the financial market by borrowing treasuries from a broker and selling them at the current market price with the expectation of buying them back at a lower price in the future. This allows the investor to profit from a decrease in the value of treasuries.
How does consumer expectation affect demand for goods?
Consumers will buy more of a good when its price is lower and less when its price is higher.
Which economic concept is defined as the measure of how responsive consumers are to price change?
consumer expectation
