arks Window Help 46% Fri 6:04 PM raleza Extrema Capltulo 47 omework Ch. 3 Help S

Question

arks Window Help 46% Fri 6:04 PM raleza Extrema Capltulo 47 omework Ch. 3 Help Save&ExitSubm Suppose wildfires in California destroy a number of major wineries. At the same time, suppose consumers' incomes fail If win s a normal good, then how wllboth of these factors (the destruction of the wineries and the decrease in consumers income affect the equilibrium price and quantity of wine? The equilibrium price of wine could either hcease or ecrease and the equilibrium quantity of wine 3.44 points MacBook Pro

Explanation / Answer

Normal goods are those goods the demand for which increases as income of people increases or the economy's growth rate increases.

As the widfire destroys major number of wineries,the supply will suffer and due to fall in consumer's income,the equilibrium quantity of wine will decrease so, the equilibrium price will either increase or decrease.

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