Video game consumers have been notified that an industry-wide sale of video games will take place later in the week. Prices are expected to fall by as much as 50%

Question

. What will happen in the market for video games leading up to the anticipated sale?(1 point)
Responses

Demand for video games will rise.
Demand for video games will rise.

The quantity demanded for video games will rise.
The quantity demanded for video games will rise.

Demand for video games will fall.
Demand for video games will fall.

The price of video games will rise.

Answer 1

Leading up to the anticipated sale where prices are expected to fall by as much as 50%, consumers are likely to postpone their purchases in anticipation of lower prices. This behavior will shift the demand dynamics in the market. Specifically, the correct response would be:

Demand for video games will fall.

This is because, as consumers expect lower prices in the future, they will choose to buy less now, leading to a decrease in current demand.