argely due to rising rents for vineyards. At the same time, more and more Americans prefer wine over beer. Which of the following best explains the effect of these events in the wine market? O The supply curve has shifted to the left and the demand curve has shifted to the right. As a result there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price. O Both the supply and demand curves have shifted to the right. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity. O Both the supply and demand curves have shifted to the right. As a result, there has been an increase in both the equilibrium price and the equilibrium quantity. O The supply curve has shifted to the left and the demand curve has shifted to the right. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Q3

In recent years the cost of producing wines in the U.S. has increased
largely due to rising rents for vineyards. At the same time, more and more
Americans prefer wine over beer. Which of the following best explains the
effect of these events in the wine market?
O The supply curve has shifted to the left and the demand curve has shifted to
the right. As a result there has been an increase in the equilibrium quantity and
an uncertain effect on the equilibrium price.
O Both the supply and demand curves have shifted to the right. As a result, there
has been an increase in the equilibrium price and an uncertain effect on the
equilibrium quantity.
O Both the supply and demand curves have shifted to the right. As a result, there
has been an increase in both the equilibrium price and the equilibrium quantity.
O The supply curve has shifted to the left and the demand curve has shifted to
the right. As a result, there has been an increase in the equilibrium price and an
uncertain effect on the equilibrium quantity.
Transcribed Image Text:In recent years the cost of producing wines in the U.S. has increased largely due to rising rents for vineyards. At the same time, more and more Americans prefer wine over beer. Which of the following best explains the effect of these events in the wine market? O The supply curve has shifted to the left and the demand curve has shifted to the right. As a result there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price. O Both the supply and demand curves have shifted to the right. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity. O Both the supply and demand curves have shifted to the right. As a result, there has been an increase in both the equilibrium price and the equilibrium quantity. O The supply curve has shifted to the left and the demand curve has shifted to the right. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity.
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