Use the Figure Below to Answer the Following Questions

question 40

Multiple Choice

Use the figure below to answer the following questions.

Figure 4.1.2
-Suppose this coming winter France will have unusually bad weather,and that next year's wine crop will be substantially reduced.Select the best statement.

• A)The French wine supply will increase as price rises.
• B)If the demand for French wine is elastic, wine producers will experience an increase in total revenue.
• C)The initial change in the market will create a surplus of French wine.
• D)In the final equilibrium, price and quantity will be higher.
• E)none of the above