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Discuss the long and short run effects

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In 2012 a severe drought in Chile significantly reduced grape and wine production. Between 2012 and present, a less severe drought has continued to be an issue during the grape growing season in Chile. Your boss asked you to analyze the short and long run effects of the droughts on low end wine markets (<$10 per bottle), where Chilean wines compete in world markets with wine from Argentina, Australia, New Zealand, and the United States. Drawing on concepts from Lectures 3-5, discuss the long and short run effects of the 2012 drought in Chile on low-end wine markets.

Reference no: EM131719099

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