Changes in Market Conditions In Apetizerland, most residents eat cheese with either wine or champagne (wine and champagne are substitutes). Suppose that the price of champagne has suddenly doubled due to government regulations. Describe how this event affects each of the three markets involved: the market for cheese, the market for wine, and the champagne market. 

For each of those events, do the following: 

1. Draw the demand and supply curves. (6 points) 

2. Which side of the market is affected (supply or demand?) (6 points) 

3. How is supply or demand affected? (Shift in which direction?) (6 points) 

4. What are the new equilibrium price and quantity in the market? (6 points)