For this week I have two scenarios for you to comment on. To answer the questions you must draw a supply and demand curve and determine whether supply or demand is changing (then determine if it is increasing or decreasing).

Scenario 1: A hurricane in Chile wipes out several grape farms. How does this impact the market for Chilean wine (what happens to price and quantity of Chilean wine?

Scenario2: Based on scenario 1 the price of wine will either increase or decrease. How does this impact the market for Chilean beer (assuming wine and beer are substitutes)?