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I. Consider the market for Wine. a. Recent medical research has established that drinking wine in moderation can improve heart health and lead to a
I. Consider the market for Wine. a. Recent medical research has established that drinking wine in moderation can improve heart health and lead to a longer life. Explain the impact of this medical research on the equilibrium price and quantity of wine. Your explanation will be in terms of shifts in demand or supply (or both, or neither) and the effects of any shift. Describe the process by which the shift moves us to a new equilibrium price and quantity of wine. b. For purpose of this question, ignore the information in part a. Recent wildfires in northern California have destroyed much of the vineyards and grapes from which wine is produced. Explain the impact of these wildfires on the equilibrium price and quantity of wine. Your explanation will be in terms of shifts in demand or supply (or both, or neither) and the effects of any shift. Describe the process by which the shift moves us to a new equilibrium price and quantity of wine
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