The Elasticity of Demand for California Winegrapes

Fuller, Kate B. and Julian Alston

from ARE Update Vol. 16, No. 4, Mar/Apr, 2013

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Abstract

The demand for California winegrapes is quite elastic–i.e., responsive to prices. This demand elasticity reflects substitution between wine from California and other sources and between quality categories. We estimate elasticities of demand for winegrapes from three regions of California that range from –2.6 to –9.5.

Keywords

price response, differentiated goods, regional

Citation

Fuller, Kate B. and Julian Alston. "The Elasticity of Demand for California Winegrapes." ARE Update 16(4)(2013):5-8. University of California Giannini Foundation of Agricultural Economics.
https://giannini.ucop.edu/publications/are-update/issues/2013/16/4/the-elasticity-of-demand/