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Short run effect on demand/supply curves watch

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    Dear community,

    I have a question: How does the demand and supply curves (and equilibrium point) are affected, in SHORT RUN, by an expectation of the rise of prices in a few years in the land market? I mean, I would see the demand rising once some people might invest on it once it is cheaper now, however I am not sure if this would be a justification. Furthermore, how does the supply curve is affected in short run? I am confuse with this question and I am not finding explanation on web. Thank you in advance!
    Yours,
    Maria
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    I'm trying to make sense of things myself, but I believe that it's this:


    Consumers anticipate that prices will rise of land will rise in the next few years. Therefore, there will be a shift in AD to the right as consumption increases, with people buying the land whilst it's cheaper.

    I'm guessing that considering there would be excess demand, the supply curve would shift to the left as firms raise prices to offset the surplus.


    Again, may be completely wrong but I tried!
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    Someone please do correct me if I'm wrong.
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    Thank you very much!


    (Original post by IIPolaroidII)
    I'm trying to make sense of things myself, but I believe that it's this:


    Consumers anticipate that prices will rise of land will rise in the next few years. Therefore, there will be a shift in AD to the right as consumption increases, with people buying the land whilst it's cheaper.

    I'm guessing that considering there would be excess demand, the supply curve would shift to the left as firms raise prices to offset the surplus.


    Again, may be completely wrong but I tried!
 
 
 
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