Vineyards can grow either red wine grapes or white wine grapes on their land. Which of the following would cause the supply of red wine grapes to decrease?
A)An increase in the price of white wine grapes.
B)A decrease in the price of white wine grapes.
C)An increase in the demand for red wine grapes.
D)An increase in the price of red wine.

Question

Quizplus · Accepted Answer

If the price of white wine grapes increases, then vineyards may choose to allocate more of their land to growing white wine grapes instead of red wine grapes, causing a decrease in the supply of red wine grapes.

Vineyards Can Grow Either Red Wine Grapes or White Wine