Managerial Economics 12th Edition by Christopher Thomas,Charles Maurice

Exercise 1

Suppose you are the manager of a California winery. How would you expect the following events to affect the price you receive for a bottle of wine?
a. The price of comparable French wines decreases.
b. One hundred new wineries open in California.
c. The unemployment rate in the United States decreases.
d. The price of cheese increases.
e. The price of a glass bottle increases significantly due to new government antishatter regulations.
f. Researchers discover a new wine-making technology that reduces production costs.
g. The price of wine vinegar, which is made from the leftover grape mash, increases.
h. The average age of consumers increases, and older people drink less wine.