nstructions: For question 1 parts A, B, C and D you need to draw a supply and demand graph to illustrate what is happening in the market. Make sure to clearly show any changes in equilibrium. Use the powerpoint presentation Demand and Supply Shifts in Module 4: Supply and Demand (chapter 3) as a guide to illustrate changes in equilibrium points. 1. A few years ago in Northern California wildfires destroyed many vineyards. The market for wine was affected not only at the wholesale level but also at the retail level. Wine drinkers had to adjust their drinking habits. The state of Washington is also another major producer of wine. For each of the following questions use supply and demand analysis Use a graph to illustrate each answer. A) How did the wild fires affect price and quantity in the market for wine at the wholesale level? B) How did the wild fires affect price and quantity in the market for wine at the retail level? C) Given your answer to part B), what do you think would happen to price and quantity in the market for cheese (assume wine and cheese are complimentary goods)? D) How did the wild fires affect price and quantity in the market for wine originating in the state of Washington ?
