Assume the market for wine is functioning at its equilibrium. For each of the following situations, say

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Assume the market for wine is functioning at its equilibrium. For each of the following situations, say whether the new market outcome will be efficient or inefficient.
a. A new report shows that wine is good for heart health.
b. The government sets a minimum price for wine, which increases the current price.
c. An unexpected late frost ruins large crops of grapes.
d. Grape pickers demand higher wages, increasing the price of wine.
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Microeconomics

ISBN: 978-1259163531

1st edition

Authors: Dean Karlan, Jonathan Morduch

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