Question: Assume in a simple example that something occurs in an economy which produces Good X. This will impact consumer expectations and consumers will expect the
Assume in a simple example that something occurs in an economy which produces "Good X". This will impact consumer expectations and consumers will expect the price of "Good X" to increase in the economy. Assume that this is a competitive market, what will happen to the equilibrium price and quantity of "Good X"?
Use supply and demand analysis to demonstrate your answer and be sure to provide the rationale behind what is happening and also discuss any interesting observations or outcomes.
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