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प्रश्न
How do expectations about future prices affect the supply of a commodity?
लघु उत्तरीय
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उत्तर
Producers’ expectations about future market prices affect the supply of any good. If the producers expect an increase in the price of a commodity in the future, they will supply less today and hoard it so as to offer a large quantity of the commodity in the future at higher prices. Conversely, expectations of a fall in future prices tend to increase supply in the current period.
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