Suppose you are the manager of a California winery. Using demand and supply conc

Question

Suppose you are the manager of a California winery. Using demand and supply concept as a point of reference, how would you expect the following events to affect the price you receive for a bottle of wine. - Please use graphs to explain your answers

a. The price of comparable French wines decreases.

b. One hundred new wineries open in California.

c. The unemployment in the United States decreases.

d. The price of cheese increases.

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

f. The price of wine vinegar, which is made from the leftover grape mash, increase.

Explanation / Answer

a) Demand curve moves in and to left; price and quantity go down,

b) Supply curve moves out and to right, price goes down quantity goes up.

c) Demand curve moves out and to right; price goes up, quantity increases.

d) Demand curve moves in and to left price and quantity go down.

e) Supply curve moves out and to right price goes down quantity goes up.

f) Supply curve moves out and to right; price goes down quantity goes up.

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