Explore BrainMass

sudden and permanent shift

Beer and wine are the only goods produced in an economy characterized by perfect competition. Suddenly there is a permanent shift in the preferences of consumers in favor of beer and away from wine.

How would this effect the short and long run for wine? Wouldn't wine suffer a loss in both or just one?

Solution Preview

For a sudden and permanent shift, the consumption of wine will ...

Solution Summary

Effects are noted of sudden and permanent shift.