Ask Question
BusinessBusiness
9 August, 14:52

A recent study suggested that moderate wine drinking may actually benefit one's health. If this information leads to an increased demand for wine, we would expect A. both the price and quantity of wine sold to decrease. B. the price to increase and the quantity of wine sold to decrease. C. the price to decrease and the quantity of wine sold to increase. D. both the price and quantity of wine sold to increase.

+1
Answers (1)
  1. 9 August, 15:48
    0
    D. both the price and quantity of wine sold to increase

    Explanation:

    The law of demand states that the higher the price, the lower the quantity demanded and vice versa.

    However, the above law may not be applicable where consumers have high demand for certain products due to health benefit. For a product that has high demand due to survey conducted on health, the price and quantity supplied will increase because producers or suppliers will take advantage of such situation in order to further increase the profit accruable to them.

    Consumers would have no further choice than to purchase them despite the price increase while suppliers will be willing to supply more in order to have more profit.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A recent study suggested that moderate wine drinking may actually benefit one's health. If this information leads to an increased demand ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
How does maggie stead make fizz in the coca cola cans?
Answers (1)
On the statement of cost of goods manufactured, which of the following items would not be reported? A. raw materials used. B. gross profit. C. direct labor costs. D. ending work in process inventory.
Answers (1)
You are trying to decide whether to purchase the latest Harry Potter book online or borrow it from the library. There is no charge for borrowing a book from the library, but going to the library takes more time than ordering a book online.
Answers (1)
Thelma works at a liquor store in 2017 and makes $44,000. she also has dividend income of $12,000 and interest income of $1,000.
Answers (1)
Human evolution is not always straightforward and the path to discovery is often riddled with surprises and unexplained finds. Fossils found on the island of Flores in Indonesia are just one example of an unexpected hominin discovery.
Answers (1)
New Questions in Business
During discussions relating to the formation of kingfisher, seth mentions that he may be interested in either (1) just selling all of his inventory in the current year for its fair market value of $96,000 or (2) proceeding with his involvement in
Answers (1)
What is a disadvantage of government bonds? a) they have a high intrest rate b) They are difficult to find c) They are relatively risk-free d) all of the above
Answers (1)
The Sedgwick Company estimates sales of a new product at 5,000 units and $3.00 per unit. Management feels the sales quantity is accurate within a 10 percent plus-or-minus range while the sales price is accurate within a 5 percent plus-or-minus range.
Answers (1)
The actual cost of direct labor per hour is $ 11.00 and the standard cost of direct labor per hour is $ 9.50. The direct labor hours allowed per finished unit is 0.25 hour.
Answers (1)
A large oil company is studying the number of gallons of gasoline purchased per customer at self-service pumps. The mean number of gallons is 10.0, with a standard deviation of 3.0 gallons. The median is 10.75 gallons.
Answers (1)
Home » Business » A recent study suggested that moderate wine drinking may actually benefit one's health. If this information leads to an increased demand for wine, we would expect A. both the price and quantity of wine sold to decrease. B.
Sign Up Forgot Password?