Production Possibilities
Trade
Basic Concepts
Demand
Supply
100

x

xx

100

a

aa

100

d

dd

100

h

hh

100

k

kk

200

y

yy

200

b

bb

200
e

ee

200
i

ii

200

l

ll

300

z

zz

300

c

cc

300

f

ff

300

What will happen to the demand for cars now if buyers expect prices to be higher 6 months from now?

The demand would increase.

300

m

mm