Assume That in Recent Years the Cost of Producing Microbrew

question 93

Multiple Choice

Assume that in recent years the cost of producing microbrew beer in the U.S.has decreased largely due to technological improvements.At the same time,more and more Americans prefer microbrew beer over wine.Which of the following best explains the effect of these events in the microbrew beer market?

• A)The supply curve has shifted to the right and the demand curve has shifted to the left.As a result there has been a decrease in the equilibrium quantity and an uncertain effect on the equilibrium price.
• B)Both the supply and demand curves have shifted to the right.As a result,there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price.
• C)Both the supply and demand curves have shifted to the right.As a result,there has been an increase in both the equilibrium price and the equilibrium quantity.
• D)The supply curve has shifted to the left and the demand curve has shifted to the right.As a result,there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity.

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Definitions:

Elisabeth Kübler-Ross

A Swiss-American psychiatrist known for her theory on the five stages of grief, originally described in her book "On Death and Dying".

Stages of Dying

A concept, often associated with Elisabeth Kübler-Ross, outlining the typical progression of emotional stages experienced by terminally ill patients, including denial, anger, bargaining, depression, and acceptance.

Rumination

The process of continuously thinking about the same thoughts, which tend to be sad or dark, contributing to negative thinking patterns.

Gerontocracy

A form of social structure or government in which the ruling authority is vested in the elderly or the oldest members of the society.