if-producers-expect-the-price-of-their-product-to-increase-in-the-future-what-is

Question

If producers expect the price of their product to increase in the future, what is the likely immediate effect on supply?

Accepted Answer

Supply will decrease as producers store goods for future sale.

Answer

Supply will increase as producers try to sell more now.

Answer

Demand will increase.

Answer

Supply will remain unchanged.