When prices are expected to drop in the future, what happens to demand?

When consumers expect prices to drop in the future, they are likely to delay their purchases in anticipation of lower prices. This expectation leads to a decrease in current demand for goods and services. Buyers might hold off on buying items now, choosing instead to wait for a better deal later. As a result, the overall demand curve shifts to the left, indicating a decrease in demand at current prices. This behavior reflects the principle that consumer expectations can significantly influence their purchasing decisions, highlighting the dynamic nature of market demand in response to anticipated future price changes.