Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
1)When there is an increase in demand, A
1)When there is an increase in demand,
A. the demand curve moves to the left.
B. price falls and quantity rises.
C. the demand curve moves to the right.
2)A new technology makes it cheaper to produce wine. Therefore, considering the market for wine, equilibrium price _____ (increases/decreases) and equilibrium quantity _____(increases/decreases).
D. price rises and quantity falls.
Expert Solution
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.
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
