Assume that we are looking at the market for California wine. Assume that the initial equilibrium price is $20 and quantities are 1,000. What would be the impact on this market of a severe drought that destroys 50% of the grapes that are used to make this wine? Supply would shift to the left, a shortage would develope, prices would decrease resulting in higher prices and lower quantity of wine. Supply would shift to the left, a surplus would develope, prices would increase resulting in higher prices and lower quantity of wine. Supply would shift to the left, a shortage would develope, prices would increase resulting in higher prices and higher quantity of wine. Supply would shift to the left, a shortage would develope, prices would increase resulting in higher prices and lower quantity of wine.
Assume that we are looking at the market for California wine. Assume that the initial equilibrium price is $20 and quantities are 1,000. What would be the impact on this market of a severe drought that destroys 50% of the grapes that are used to make this wine? Supply would shift to the left, a shortage would develope, prices would decrease resulting in higher prices and lower quantity of wine. Supply would shift to the left, a surplus would develope, prices would increase resulting in higher prices and lower quantity of wine. Supply would shift to the left, a shortage would develope, prices would increase resulting in higher prices and higher quantity of wine. Supply would shift to the left, a shortage would develope, prices would increase resulting in higher prices and lower quantity of wine.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Assume that we are looking at the market for California wine. Assume that the initial
Supply would shift to the left, a shortage would develope, prices would decrease resulting in higher prices and lower quantity of wine.
Supply would shift to the left, a surplus would develope, prices would increase resulting in higher prices and lower quantity of wine.
Supply would shift to the left, a shortage would develope, prices would increase resulting in higher prices and higher quantity of wine.
Supply would shift to the left, a shortage would develope, prices would increase resulting in higher prices and lower quantity of wine.
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