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WAEC Economics 2018 Question 9

Question 9

Theory of Demand

An exceptional demand curve can result from

  1. A.increase in price of raw materials.
  2. B.increase in the size of the population.
  3. C.expectation of future price increase.
  4. D.change in taste of the consumer.
Show the answer and explanation

Answer: C (expectation of future price increase.)

Explanation

If people expect prices to keep rising, they buy more as price rises.