Question: CURRENT OBJECTIVE Identify factors that shift demand curves Question Word leaks to consumers that a large sale will begin one week from today for a

CURRENT OBJECTIVE

Identify factors that shift demand curves

Question

Word leaks to consumers that a large sale will begin one week from today for a furniture store. As a result, the store's manager gives some employees the day off tomorrow in anticipation of weaker demand in the short term. Is this a wise move? Why?

Select the correct answer below:

It is a poor decision, since word of the sale will immediately increase demand.

It is a good decision, since consumers will defer buying now in anticipation of the sale later.

It is a poor decision, since expectations do not affect short

-

run demand.

It is impossible to guess based on the available information.

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CURRENT OBJECTIVE Identify factors that shift demand curves Question Word leaks

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