If a drought destroyed half of the Western Cape wine crop at a time when the health benefits of red wine were being well publicised, economists would expect that in the market for wine
A) quantity exchanged would rise but the change in price is uncertain without further information.
B) price would rise but the change in quantity exchanged is uncertain without further information.
C) both price and quantity exchanged would rise.
D) price would rise and quantity exchanged would fall.
Correct Answer:
Verified
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