Economics WAEC

How does producers expectation of a price fall affect the supply curve of a product? There will be?

A. a moment along the curve
B. a leftward shift
C. no shift of the supply curve
D. a shift to the right

Correct Answer: Option D

D. a shift to the right

Explanation

If sellers expect that the price of the goodwill is decreasing in the future, then they are likely to sell more today. This causes an increase in supply and a rightward shift in the supply curve.

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