Speculative effects

Speculative Effects - If consumers expect price changes for storable products, this can lead to speculative effects. In the event of price increases, demand increases in the short term if further price increases are expected.

In the event of price reductions, demand will drop in the short term if further price reductions are expected. The price elasticity of demand is temporarily positive in these cases. Speculative demand effects can be observed in practice for consumer goods (e.g. heating oil, cigarettes and coffee beans) and consumer goods (e.g. computers, oriental carpets and real estate) as well as in general with inflation (flight into real assets) and deflation ( Escape from material assets).

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