<blockquote>
<p>Anthony’s Ephemera Emporium sells signed photos of cryptids like Bigfoot, chupacabra, and other mythical creatures. These photos are substitutes in production.
If Anthony expects the price of signed photos of Bigfoot to increase, what happens?</p>
</blockquote>
<blockquote>
<p>(Choice A, Incorrect)   The demand for signed photos of either good increase.</p>
</blockquote>
<blockquote>
<p>(Choice B, Correct)   The supply of signed photos of chupacabras decrease.
CORRECT</p>
</blockquote>
<blockquote>
<p>(Choice C, Incorrect)   The supply of signed photos of Bigfoot increases</p>
</blockquote>
<blockquote>
<p>(Choice D, Incorrect)   The supply of signed photos of Bigfoot decreases</p>
</blockquote>
<blockquote>
<p>(Choice E, Incorrect)   The supply of signed photos of chupacabras increases</p>
</blockquote>
<p>Hello,</p>
<p>I am confused about this. If suppliers expect the price of signed photos of Bigfoot to increase, won't he hold back production of that good to a later time? So, the supply of signed photo of Bigfoot decreases. So, isn't option (C) correct?</p>
<p>Thanks</p>

CC BY-SA 4.0
2023-03-28T13:13:10.457Z
Hi! Is this a machine translation? How accurate is the translation of the phrase "*what happens*"?
Giskard
CC BY-SA 4.0
2023-03-28T14:18:23.227Z
Hi, no this is not a translation. The question is asking what happens to the supply curves due to the given change and assuming all other things equal (ceteris paribus).
MangoPizza
CC BY-SA 4.0
2023-03-28T16:08:52.327Z
the answer depends on the expectations of the purchasers. if they think it's going up also, then they will buy now in order to avoid the increase. If you're instructor has covered the concept of rational expectations, then this might be what he-she is getting at with the question.
mark leeds
<macroeconomics><microeconomics><supply-and-demand>
Suppliers holding back production in expectation of better price in future
MangoPizza
# Suppliers holding back production in expectation of better price in future

(Asked by: username_0 on 2023-03-28)

> Anthony’s Ephemera Emporium sells signed photos of cryptids like Bigfoot, chupacabra, and other mythical creatures. These photos are substitutes in production.
> If Anthony expects the price of signed photos of Bigfoot to increase, what happens?

> (Choice A, Incorrect) The demand for signed photos of either good increase.

> (Choice B, Correct) The supply of signed photos of chupacabras decrease.
> CORRECT

> (Choice C, Incorrect) The supply of signed photos of Bigfoot increases

> (Choice D, Incorrect) The supply of signed photos of Bigfoot decreases

> (Choice E, Incorrect) The supply of signed photos of chupacabras increases

Hello,

I am confused about this. If suppliers expect the price of signed photos of Bigfoot to increase, won't he hold back production of that good to a later time? So, the supply of signed photo of Bigfoot decreases. So, isn't option (C) correct?

Thanks

**Tags:** macroeconomics, microeconomics, supply-and-demand

> **Comments:**
> **username_1**: Hi! Is this a machine translation? How accurate is the translation of the phrase "*what happens*"?  
> **username_0**: Hi, no this is not a translation. The question is asking what happens to the supply curves due to the given change and assuming all other things equal (ceteris paribus).  
> **username_2**: the answer depends on the expectations of the purchasers. if they think it's going up also, then they will buy now in order to avoid the increase. If you're instructor has covered the concept of rational expectations, then this might be what he-she is getting at with the question.  

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