Following the release of a new study showing even more benefits to drinking red wine, economists expect:
A) a shortage of red wine until the price rises.
B) a surplus of red wine until the price falls.
C) that both the price and quantity of red wine will decrease.
D) the supply of red wine will increase immediately.

Question

Quizplus · Accepted Answer

The new study increases the demand for red wine, leading to a shortage until the price rises to a new equilibrium.

Following the Release of a New Study Showing Even More