Prices of BC Merlot Wine (Assume That This Is a Normal

question 130

Multiple Choice

Prices of BC Merlot wine (assume that this is a normal good ) have risen steadily in recent years.Over this same period, prices for French oak barrels used for wine storage have dropped and consumer incomes have risen.Which of the following best explains the rising prices of BC Merlots?

• A)The supply curve for Merlot has shifted to the right while the demand curve for Merlot has shifted to the left.
• B)The demand curve for Merlot has shifted to the right more than the supply curve has shifted to the right.
• C)The demand curve and the supply curve for Merlot have both shifted to the left.
• D)The supply curve for Merlot has shifted to the right more than the demand curve has shifted to the right.

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Definitions:

Growth Rate Models

Financial models that project the future expansion of a company or economy based on historical data and assumptions about future conditions.

Preferred Stock

An ownership type in a corporation that prioritizes claims on assets and income over ordinary shares, often characterized by consistent dividend payouts.

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The anticipated return on an investment, accounting for various outcomes and their probabilities.

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