wine supply demand presentation

wine supply demand presentation - A QUICK OVERVIEW OF...

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1 A A Q Q U U I I C C K K O O V V E E R R V V I I E E W W O O F F S S U U P P P P L L Y Y A A N N D D D D E E M M A A N N D D A A P P P P L L I I E E D D T T O O W W I I N N E E Wine Management, Markets and Economics University of California, Davis Spring 2009 Daniel A. Sumner
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2 Economics is supply and demand Behind the supply side are production and costs Behind the demand side are consumer preferences, income and other consumer budget alternatives So consider The supply function W s = W s (P w ; cost of production shifters) The demand function W d = W d (P w ; Income, Demographic factors, P other stuff ) Solve these such that W s = W d to get the equilibrium market clearing price, P w* The model gets a little more complicated when we consider storage, government demand (maybe to dump the product etc.)
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3 Factors Affecting Supply/Demand of Wine Supply Prices of grapes Prices of other materials Barrels, bottles, etc. Winery wage rates
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This note was uploaded on 09/29/2010 for the course VEN 101C 91861 taught by Professor Davidsmart during the Spring '09 term at UC Davis.

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wine supply demand presentation - A QUICK OVERVIEW OF...

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