How does hurricane impact the market for chilean wine


Problem

Scenario I: A hurricane in Chile wipes out several grape farms. How does this impact the market for Chilean wine (what happens to price and quantity of Chilean wine?

Scenario II: Based on scenario I the price of wine will either increase or decrease. How does this impact the market for Chilean beer (assuming wine and beer are substitutes)?

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Microeconomics: How does hurricane impact the market for chilean wine
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