(Answer)

(a) The price of comparable French wines decreases.

Other French wines would be a substitute of the wine that is produced in California. Substitute goods are those goods which can be used in place of each other.

There is a positive relationship between the price of one substitute good and the demand of the Other substitute good.

As it is given in the question that the price of French wine has decreased, so this would lead to the decline in the demand of Californian wine.

Demand curve would shift leftward and there would be decline in the equilibrium price.

 

(b) One hundred new wineries open in California.

As 100 new wineries have opened up in California, so this would lead to the increase in the production of wines in California and thus the supply of wines would increase.

The supply curve would shift rightward and there would be decline in the equilibrium price.

 

(c) The price of a glass bottle increases, significantly, due to new government anti-shatter regulations.

As we know that the glass bottles are used in the storing the wines.

Increase in the price of Glass bottles ultimate lead to the increase in the price of wines.

This would ultimately to the decline in the supply and the supply curve shift towards the left leading to the increase in the equilibrium price.

 

(d) Researchers discover a new wine-making technology that reduces production costs.

As it is given that with the invention of new technology, the cost of production has come down. In other words, it means that more volume of wine can be produced with the given resources and ingredients.

This would lead to the increase in the supply of wines and the supply curve would shift rightward leading to the decline in the equilibrium price.

 

(e) The average age of consumers increases, and older people drink less wine.

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

Given that the average age of consumers has increased and older people drink less wine. Due to the change in the taste of consumers, the demand for wine would decline, which would lead to the shift in the demand curve leftward. All this would lead to the decline in the equilibrium price.