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Mathematics 9 Online
OpenStudy (lukecrayonz):

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

OpenStudy (lukecrayonz):

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

OpenStudy (lukecrayonz):

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

OpenStudy (anonymous):

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.

OpenStudy (lukecrayonz):

But its expectations. Price has not changed yet

OpenStudy (anonymous):

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.

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