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(15 points) Consider the market for beer in Eugene. Demonstrate (draw on) a graph and indicate in words what happens to the equilibrium price and
(15 points) Consider the market for beer in Eugene. Demonstrate (draw on) a graph and indicate in words what happens to the equilibrium price and quantity under each of the following situations (sketch the curves for supply and demand indicating how the move due to the situation): A. (2.5 points) The price of hops increases. B. (2.5 points) The price of wine (a substitute in consumption) falls. C. (5 points) Both the price of hops increases and the price of wine fals D. (5 points) Consumer income falls due to an economy-wide recession and breweries in the area are short staffed reducing production
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