Question

Suppose you are the manager of a California winery. How would you expect the following events to affect the price for a bottle of wine (assume that you are a 'price-taker')? Use demand and supply curves to illustrate.

a. The price of comparable French wines decrease.

b. The unemployment rate in the United States decreases.

c. The price of cheese increases.

d. The price of a glass bottle significantly increases due to new government anti-shatter regulations.

e. Researchers discover a new wine-making technology that reduces production costs.

f. The price of vinegar, which is made from leftover grape mash, increases.

g. The average age of consumers decreases, and older people drink less wine.

Answer 1