During the spring of 2015, the United Kingdom experienced a brief period of deflation. According to an article in the Wall Street Journal, "The U. K.'s history of sticky and hard-to-control inflation suggests that a short period of falling prices will be taken as a reprieve for consumers, not as a signal to defer purchases." Source: Richard Barley, "U. K. Deflation More Curiosity Than Concern," Wall Street Journal, May 19, 2015. Consumers could see deflation as a "signal to defer purchases" because if deflation is expected to continue:
a. producers may offer more to choose from in the future.
b. prices would be higher in the future.
c. prices would be lower in the future
d. producers may increase product quality in the future.

answer; (10%) commission;

answer casual models;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.