Chapter 6, Problem 6MCQ

To determine

The impact of sellers’ expectations on the supply of hiking boots.

Explanation of Solution

An increase in the expected future price reduces the supply of goods and services in the market today and causes the supply curve to shift leftward.

A fall in the expected future price of goods and services increases the supply and causes the supply curve to shift rightward.

So, a rise in boot prices in the near future will lead to a fall in boot supply.

Option “c” is correct.