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Likewise, if a price increase is expected, demand will increase
in the current period, as consumers take advantage of current prices.
An interesting aspect of a change in expectations about future
prices is that they tend to be self-fulfilling prophecies; An
expectation of rising prices causes current demand to rise, which,
in turn drives up prices, causing the expectation to be correct.
An expectation of falling prices, causes demand to fall, in turn
driving prices down, and again fulfilling the expectation.
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