A recent study suggested that moderate wine drinking may actually benefit one's health. If this information leads to an increased demand for wine, we would expect
A) both the price and quantity of wine sold to increase.
B) both the price and quantity of wine sold to decrease.
C) the price to decrease and the quantity of wine sold to increase.
D) the price to increase and the quantity of wine sold to decrease.

Question

Quizplus · Accepted Answer

When demand increases, it typically leads to an increase in both the price and quantity sold, as suppliers respond to higher demand by raising prices and producing more.

A Recent Study Suggested That Moderate Wine Drinking May Actually