Expecting price to increase after harvest will lead to an increase in demand today. The supply of coffee will not change. The quantity supplied will increase as price increases. The increase in demand will result in a higher equilibrium price and quantity. See Figure 1 .
Consumers anticipate incomes falling over the next few years.
Buyers know that a decrease in income in the near future will make it difficult to pay for a 30-year mortgage. As a result, expecting income to decrease will result in a decrease in demand today. The supply of new homes will not change. The quantity supplied will decrease as price decreases. The decrease in demand will result in a lower equilibrium price and quantity.