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Demand Determinants: Price Expectations about Gasoline

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If individuals expect the price of gasoline to fall, which of the following is most likely?

A

Today's demand for gasoline will decrease, and the quantity demanded will increase when the price falls.

B

Today's demand for gasoline will decrease, and the demand will increase when the price falls.

C

Today's demand for gasoline will increase, and the quantity demanded will fall when the price falls.

D

Today's demand for gasoline will increase, and the quantity demanded will increase when the price falls.

E

Today's demand for gasoline will increase, and the demand will decrease when the price falls.