12 Market for Wine The following series of events occurs. Explain the result of the occurrence of each event. The price of wine is currently $5 per glass. List what would happened based on the type of shift. A. Demand or Supply? B. Shift Left or Right? C. Price Increase or Decrease? D. Quantity Increase or Decrease? 1. An advertising campaign for California wine is successful. Ex. Demand, Right, P4 , Q+ 2. A fungus wipes out half the grape crop in California. 3. The price of cheese (a complement) increases. 4. The price of beer (a substitute) increases. 5. Producers expect the price of wine to go down in the fall. 6. Income increases (assume that wine is a normal good). 7. A wine press is invented that helps press out every last drop of juice from the grape. 8. A law passes that requires farmers obtain injury insurance for all employees, including migrant workers. 9. What would happen if the government declares a price floor of $6 per glass? 10. What would happen if the government declares a price ceiling of $6 per glass? 11. Both the demand for wine and the supply of wine increases. What will happen to price and quantity? Draw the graph to prove it. Scanned with CamScanner