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Quick econ question?! I simply just don't get it :(
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If people expect the price of bananas to drop, what occurs to supply & demand?
Would it be that demand drops due to the fact that people want to wait to buy it?
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.
But its expectations. Price has not changed yet
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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