1)

The correct answer is: C. the demand curve moves to the right.

An increase in demand is due to changes in factors that favour the consumption of a particular product other than a change in the price of the product. An increase in demand moves the demand curve to the left while a decrease in demand moves the demand curve to the left.

2)

• Therefore, considering the market for wine, equilibrium price decreases and equilibrium quantity increases.

One of the determinants of supply is technological advancements. When there is a discovery of new technology that reduces the costs of producing wine, the suppliers are able to produce more units of wine at any given price. This means that there is a rightward shift of the supply curve while the demand curve remains constant. In this scenario, the equilibrium price will decrease, and the equilibrium quantity will increase.