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Future price expectations can significantly influence both short and long-term supply. If producers anticipate higher future prices, they may hold back current supply to sell later at a profit, leading to a temporary decrease in short-term supply. Conversely, if they expect prices to fall, they may increase current production to benefit from higher prices before they drop, boosting short-term supply. In the long term, sustained expectations of higher prices can incentivize investment in capacity expansion, thereby increasing long-term supply.
What else can I help you with?
How do future expectations about the price of a good affect the present supply?
If the price is expected to increase, many producers will hold onto their supply.
How do the future expectations about the price of a good affect the present supply?
If the price is expected to increase, many producers will hold onto their supply.
How will future expectations will affect demand?
it will happen by price changing.
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 are some determinants of individual supply?
The price of the product, the price of input goods that are used to make it, the state of the industry's technology, government taxes and subsidies and expectations about the future market price of the good.
How does supply affect price?
Short supply generally results in price increase.
What effects supply and demand?
Fluctuations in the price of goods. The affect of demand on price is directly proportional and supply's affect on price is indirectly proportional.
Which is not considered to be a determinant of the price elasticity of demand for a particular good?
Expectations of the future price
How did supply and demmand effect the price of cattle?
Hoe did supply and demand affect the price of cattle
How does the price affect the supply of commodity?
Normally it's the other way 'round, the supply of a commodity determines the price. I assume if the price were out of line with the supply a lower price would decrease supply and a higher price would increase supply if increasing the supply were possible.
How does the market establish the equilibrium price for crude oil?
The general term Price of Oil usually referees to the next month yet-unexpired futures contract for the Light Sweet Crude (West Texas Intermediate) oil. Thus, the equilibrium for such defined Oil Price is established by investor's expectation about supply and demand conditions for the yet-unexpired-next-month future contract. Such expectations about supply-demand conditions for the future contracts are driven both by expectations about fundamental supply-demand conditions of the real physical crude oil markets, as well as speculative so-called momentum plays.
How the non price price factors affect demand and supply?
By doing the factors..
