Question

Homework: Supply, Demand, and Markets Extended-Spring 20 Score: 1 of 2 pts 10 of 15 (15 complete) HW Score: 95.659 Text Problem 8 Quest Land in Sonoma, California, can be used to either grow grapes for pinot noir wine or to grow Gravenstein apples Market for Gravenstein Apples Given this information, what is the relationship between pinot noir wine and Gravonstoin apples? A. They are substitutes in consumption OB. They are complements in consumption c. They share a common input OD. They are completely unrelated If the demand for pinot noir suddenly shifts sharply to the right, we would expect to see an increase in the demand for land in Sonoma, which would increase the equilibrium price of land Assume that a sharp increase in demand for pinot noir leads to an increase in the price for land Graph the impact of this price increase for land on the market for Gravenstein apples. 1.) Using the 4-point curve d ing tool depict the effect of the increased price of land in Sonoma on them for ravenstein apples Draw either a shift in the supply or demand curve for Gravenstein apples Label your curve Click throph, choose a tool in the palette and follow the instruct 1 part 1 emning Check 0 B e Dil Prtsen Home End Pgu * o

Answer 1

ans THEY ARE COMPLETELY UNRELATED.

If demand for wine goes up, demand for land goes up. this is because land is used to grow to grow grapes which is an input for wine. and when demand goes up price for land also goes up by law of demand.

the supply curve for apples shifts leftwards and thus supply decreases. the land is input for apples and since land is costlier it means supply should decrease.

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