Reference no: EM131833447

In an article titled, "How the Napa Fires Could Affect the Taste, Price of your Wine," on USA Today's web site in October 2017, it was reported that "...smoky flavors in wine are a possibility in the aftermath of the fires charring Napa, Sonoma and other parts of northern California wine country." Assuming this "wine taint" does happen, and knowing that many vineyards were destroyed, what would you expect to happen in the market for wine? Use what you have learned about 1) demand (and its determinants) and quantity demanded and 2) supply (and its determinants) and quantity supplied as you discuss this with your group members.

To help you figure this out, draw a supply/demand graph for wine for yourself (not to submit to me); then compare your graph with those of your group members. If it's easy for you to scan your graph and attach it to your post, do that. But if it's not easy to do that, just describe your graph in words. That is, explain how you labeled the axes of your graph, what the demand curve looks like, what the supply curve looks like, how you labeled the equilibrium price and quantity, any curve shifts, and what happened to equilibrium price and quantity as a result of the curve shift(s) (changes in demand and/or supply). [You will have to be able to explain how to draw a supply/demand graph on the first exam.]