What will happen in the artichoke market now if buyers expect higher artichoke prices in the near future?

A. The demand for artichokes will be unaffected.
B. The demand for artichokes will decrease.
C. The supply of artichokes will increase.
D. The demand for artichokes will increase.

D. The demand for artichokes will increase.

Explanation:

Demand is the willingness of a consumer to pay for the goods and services so purchase.

One of the major determinants of demand is expectation of change of price in the future. Others are price of related goods, income of consumers, tast and preference, and expectation of change of price in future.

When consumers speculate increase in price of certain commodity, then there would be increase in demand for such commodity now.

It therefore follows that consumers tends to follow market trend in terms of demand. They would demand for certain commodity in anticipation of price increase thereby leading to scarcity of such commodity in the market.

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