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17. If buyers expect higher gasoline prices in the future, Group of answer choices demand for...

17. If buyers expect higher gasoline prices in the future, Group of answer choices demand for gasoline will decrease today. demand for gasoline will increase today. demand remains unaffected by prices today. the Mets suck.

18. If oil sellers expect higher prices in the future, Group of answer choices Equilibrium price will decrease and equilibrium quantity will increase today. Equilibrium price will increase and equilibrium quantity will decrease today. both equilibrium quantity and equilibrium price will fall. both equilibrium price and quantity will increase.

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Answer #1

1. Demand for gasoline will increase today

If buyers expect that price of gasoline will rise in future, then demand for gasoline will increase today as buyers will be more interested in buying gasoline at current low prices.

2. Equilibrium Price will decrease and Equilibrium Quantity will increase today.

When oil sellers expect the prices to rise in future, then sellers will be more interested in supplying the oil at current high prices. As a result the quantity supplied will increase. But demand will remain the same. As a result Quantity Supplied will exceed Quantity Demanded at given price. Due to this surplus will be created. This surplus will put downward pressure on price. Hence, Equilibrium Price will reduce and Equilibrium Quantity will increase.

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