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, vineyards may switch from growing red wine grapes to white wine grapes to take advantage of higher profits, thus decreasing the supply of red wine grapes.

Vineyards Can Grow Either Red Wine Grapes or White Wine