If consumers expect a surplus for a product, what is the likely effect on their demand for that product today?

If consumers anticipate a surplus of a product, they are likely to adjust their demand downward. This is because a surplus suggests that there is more of the product available than consumers currently want to buy at the prevailing price. Knowing that they could potentially purchase the product at a lower price in the future due to excess supply, consumers may choose to wait rather than buy now. This expectation leads to a decrease in demand today, as consumers will be less inclined to purchase the product immediately when they can wait for potentially better prices later.

In contrast, demand would not remain unchanged since the expectation of a surplus creates a clear incentive for consumers to hold off on their purchases. Likewise, an increase—whether significant or slight—is counterintuitive, given that consumers would not rush to buy a product they believe will soon be oversupplied. The anticipation of lower future prices directly influences their current purchasing decisions, leading to a decrease in demand today.