A severe freeze has once again damaged the Ontario grape crop. What will the impact be on the market for wine?

Question

Quizplus · Accepted Answer

A severe freeze damaging the Ontario grape crop would reduce the quantity of grapes available for wine production, leading to a decrease in the supply of wine. This is represented by a leftward shift of the supply curve. There's no indication that the freeze would directly affect consumers' demand for wine, so the demand curve would not shift.

A Severe Freeze Has Once Again Damaged the Ontario Grape