Inflation expectations create a self-fulfilling prophecy because people who expect rising prices will increase the demand and increase in demand will raise the price level.
This is because of law of demand.
The law of demand is the most common fundamental concept used in the economics. It works in relation to the law of supply in order to explain how market economies allocate the given resources and determine the prices of goods and services that are observed in everyday transactions.
The law of demand also states that the quantity purchased by consumers varies inversely with price. In other words, the greater the price, the lower the demanded quantity will be.
This happens because of diminishing marginal utility. It means that consumers use the first units of an economic good purchased by them to serve their most urgent needs first, and then after they use each additional unit of the good to serve their each lower-valued ends.
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