Suppose you are the manager of a California winery. How would you expect the following events to affect the market equilibrium price (up or down) you receive for a bottle of wine? Please state the shift (leftward or rightward) of demand or supply.

a. The price of comparable French wines decreases.

b. One hundred new wineries open in California.

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

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

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

a. If there is a decrease in comparable French wines which are substitutes of the wine, then the demand for the California wine would decrease and shift to the left as people now shift to substitute wines. This will reduce the equilibrium price and quantity

b. This increases the market supply of wine hence shifting the market supply curve to the right. This will increase equilibrium quantity but decrease price.

c. This increases the cost of inputs for production. and reduces supply . Hence supply curve shifts to the left. This decreases quantity and increases price at equilibrium

d. This increases supply as cost of production decreases hence supply shifts to the right This leads to a higher quantity and reduced price

e. This will lead to a fall in demand as older people will consume less wine .Demand shifts leftwards This leads to reduced price and quantity at equilibrium