In the following situation, the market is initially in equilibrium. Explain the change in either supply or demand that result from the event. After the event described below, does a surplus or shortage exist at the original equilibrium price? What will happen to the equilibrium price as a result?

2013 was a very good year for California wine-grape growers, who produced a bumper crop.

A. The demand curve shifts leftward. At the original equilibrium price of the year before, the quantity of grapes supplied exceeds the quantity demanded. This is a case of surplus. The price of grapes will fall.

B. The supply curve shifts rightward. At the original equilibrium price of the year before, the quantity of grapes supplied exceeds the quantity demanded. This is a case of surplus. The price of grapes will fall.

C. The demand curve shifts rightward. At the original equilibrium price of the year before, the quantity of grapes supplied exceeds the quantity demanded. This is a case of surplus. The price of grapes will fall.

D. The supply curve shifts leftward. At the original equilibrium price of the year before, the quantity of grapes supplied exceeds the quantity demanded. This is a case of surplus. The price of grapes will fall.