The Australian wine industry has prospered over the last two decades, expanding rapidly into overseas markets. However, in recent years it has faced the following problems:
a) a rapid increase in the production of wine grapes, resulting in a corresponding increase in the supply of wine.
b) competition in overseas markets from low cost good quality wine producers in China and India.
Use demand and supply analysis to explain how these two factors would affect the price and quantity of Australian wine.

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The Answer of The Australian wine industry has prospered over the last two decades, expanding rapidly into overseas markets. However, in recent years it has faced the following problems:
a) a rapid increase in the production of wine grapes, resulting in a corresponding increase in the supply of wine.
b) competition in overseas markets from low cost good quality wine producers in China and India.
Use demand and supply analysis to explain how these two factors would affect the price and quantity of Australian wine.

The Australian Wine Industry Has Prospered Over the Last Two