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(solution) 2. Suppose you are the manager of a California winery. How would


2.  Suppose you are the manager of a California winery. How would you expect the following events to affect the price you receive for a bottle of wine? Explain your answers.

a. The price of a comparable French wine decreases.

b. One hundred new wineries open in California.

c. The unemployment rate in the United States decreases.

d. The price of cheese increases.

e. The price of a glass bottle increases significantly due to new government anti-shatter regulations.

f. Researchers discover a new wine-making technology that reduces production costs.

g. The price of wine vinegar, which is made from the leftover grape mash, increases.

h. The average age of consumers increases, and older people drink less wine.

 


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