Explain how the following event will affect the demand and supply curves for grape juice The price of grapes increases i. Explain whether the demand curve will (i) move to the left; (ii) move to the right; or (iii) not move. EXPLAIN WHY IT DOES THIS The demand curve will not move either direction. The cost of grapes does not directly impact the demand for grape juice, so the demand curve will not move. If there were changes to factors like income or consumer preferences, then the curve would have moved. ii. Explain whether the supply curve will (i) move to the left; (ii) move to the right; or (iii) not move. EXPLAIN WHY IT DOES THIS The supply curve will move to the left. Since grapes are the main source of producing grape juice and the price of those grapes has increased, this will lead to higher costs for the grape juice manufacturers. Grape juice suppliers won't be able to or unwilling to supply the same amount of juice. The curve will shift left because of the reduction in supply. iii. Draw the demand and supply curves before and after the event above