The Elasticity of Demand for California Winegrapes
Fuller, Kate B. and Julian M. Alston
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.
price response, differentiated goods, regional
Fuller, Kate B. and Julian M. Alston. 2013. "The Elasticity of Demand for California Winegrapes." ARE Update 16(4): 5-8. University of California Giannini Foundation of Agricultural Economics.