Answer :
Reducing the price of Cabernet Sauvignon leads to an increase in the C. quantity wine demanded.
When Sonoma Vineyards reduces the price of its Cabernet Sauvignon from $15 a bottle to $12 a bottle, the result is an increase in the quantity of this wine demanded. Price changes do not affect the demand curve itself but instead move the quantity demanded along the curve. In economic terms, this movement along the demand curve due to a change in price is known as a change in quantity demanded, distinguishing it from a change in demand, which would imply a shift of the whole demand curve often due to factors like income changes or changes in consumer preferences.
