Scribd Logo
Upload

Welcome to Scribd!

  • Micro Economic

    Uploaded by

    Vy
    7 views11 pages
    The document lists the group members for a project on microeconomics: Tai Ci Hui, Hoo Vi Ying, Phua Sze Sze, Lee Jie Yi, Ng Li Xuan, and Chia Sze Tian. It then discusses how an expectation of a future price rise can influence current demand, causing consumers to purchase more of a good now to avoid paying a higher price later. For example, news that the price of cooking oil will increase could prompt consumers to buy more cooking oil currently. This expectation of higher future prices can cause demand to shift rightwards from the original demand curve DD to the new curve D1D1, raising the quantity from Qo to Q1 even if the actual price

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document lists the group members for a project on microeconomics: Tai Ci Hui, Hoo Vi Ying, Phua Sze Sze, Lee Jie Yi, Ng Li Xuan, and Chia Sze Tian. It then discusses how an expectation of a future price rise can influence current demand, causing consumers to purchase more of a good now to avoid paying a higher price later. For example, news that the price of cooking oil will increase could prompt consumers to buy more cooking oil currently. This expectation of higher future prices can cause demand to shift rightwards from the original demand curve DD to the new curve D1D1, raising the quantity from Qo to Q1 even if the actual price

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    7 views11 pages

    Micro Economic

    Uploaded by

    Vy
    The document lists the group members for a project on microeconomics: Tai Ci Hui, Hoo Vi Ying, Phua Sze Sze, Lee Jie Yi, Ng Li Xuan, and Chia Sze Tian. It then discusses how an expectation of a future price rise can influence current demand, causing consumers to purchase more of a good now to avoid paying a higher price later. For example, news that the price of cooking oil will increase could prompt consumers to buy more cooking oil currently. This expectation of higher future prices can cause demand to shift rightwards from the original demand curve DD to the new curve D1D1, raising the quantity from Qo to Q1 even if the actual price

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 11

    Group Members:

    Tai Ci Hui | Hoo Vi Ying | Phua Sze Sze


    Lee Jie Yi | Ng Li Xuan | Chia Sze Tian

    MiCROECON
    OMICS
    How expectation of a future price
    rise may influence demand for a
    good.
    • Increase in present demand of the good as
    consumers will choose to buy more currently.

    • Example: If consumers receive news that the price


    of cooking oil will rise in the near future, then
    consumers will buy more cooking oil now to avoid
    paying more for the good later.
    • When consumers expected the future price of goods
    increase, the actual price remain unchanged but demand will
    increase.
    • DD curve shifts right to D1D1 and the quantity increases
    from Qo to Q1.
    RESOURCES

    You might also like