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In January, buyers of gold expect that the price of gold will fall in February. What happens in the gold market in January, holding everything else constant?
a) The quantity demanded increases.
b) The demand curve shifts to the right.
c) The demand curve shifts to the left.
d) The quantity demanded decreases.

Respuesta :

Answer:

c

Explanation:

Because it is expected that the price of gold would fall next month, buyers would buy less gold in January. this would lead to a leftward shift of the demand curve.

Only a change in the price of a good leads to a movement along the demand curve of that good. Also, only a change in the price of the good would lead to an increase or decrease in the quantity demanded of that good.

Other factors other than the change in the price of the good would lead to a shift of the demand curve. Some of those factors include :

  1. a change in consumers' expectation
  2. a change in the taste of consumers
  3. a change in income

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