Question

Quick econ question?! I simply just don't get it :(

Answer 1

If people expect the price of bananas to drop, what occurs to supply & demand?

Answer 2

Would it be that demand drops due to the fact that people want to wait to buy it?

Answer 3

I think the supply would drop because people would be buying them if they are cheaper and the demand would increase because would want more bananas for cheaper.

Answer 4

But its expectations. Price has not changed yet

Answer 5

Well if the price hasn't dropped then yeah, the demand would decrease because for example, people wouldn't buy bananas at $3 when they know the next day they will be $1.