Sonoma Vineyards reduces the price of its Cabernet Sauvignon from $15 a bottle to $12 a bottle,the result is an increase in

Question

Quizplus · Accepted Answer

The decrease in price will result in an increase in the quantity demanded, as consumers will be more willing and able to purchase the wine at the lower price. This does not necessarily mean there will be an increase in demand for the wine overall, as demand is determined by various other factors beyond just price. The supply of the wine will not be affected by a change in price, and therefore the quantity supplied will remain the same.

Sonoma Vineyards Reduces the Price of Its Cabernet Sauvignon from $15