Suppose that the market for Australian wine is in equilibrium. In two periods (periods 1 and 2) there are observed changes in equilibrium quantity in the market. Using a separate supply and demand diagram for each of the two periods, illustrate how equilibrium prices and quantities in the Australian wine market adjust:

In period 1 – in which equilibrium quantity increases medical research discovered that drinking red wine regularly, in moderate amounts, significantly lowered the risk of developing heart disease new label requirements’ regulation increases packaging costs

In period 2 – in which equilibrium quantity declines new technology reduced the cost of producing Australian wine the income of people who drink wine declines State any assumptions you are making in the analysis.