Buyers rush to purchase stocks in California vineyards following a forecast of a 30 percent decline in this year's grape harvest. What happens in the California wine market as a result of this announcement?
A) The demand curve for California wine shifts to the right in anticipation of higher prices in the future.
B) The demand curve for California wine shifts to the left in anticipation of higher prices in the future.
C) The supply curve for California wine shifts to the left in anticipation of lower quantities in the future.
D) The supply curve for California wine shifts to the right in anticipation of higher prices in the future.
A
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Which of the following is the broadest based price index?
A. the consumer price index B. the producer price index C. the implicit price deflator D. the personal consumption expenditures price index
Refer to Figure 17-6. If firms and workers have adaptive expectations, an expansionary monetary policy will cause the short-run equilibrium to move from
A) point B to point C. B) point A to point C. C) point B to point A. D) point A to point B. E) point C to point B.