Vineyards in the Champagne region of France are struggling to keep up with global demand for their product according to this article from the BBC.
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6990000/newsid_6992000?redirect=6992068.stm&news=1&nbram=1&bbwm=1&bbram=1&nbwm=1&asb=1 >
a) Use economic theory to explain why demand for champagne has risen so much
b) Use economic theory to explain why the supply of champagne will not be able to rise much further
c) If the situation continues, use a S&D diagram to explain what is likely to happen to the price of champagne
d) What solution to this problem is suggested?
e) Use a S&D diagram to explain how this would alter the champagne market and comment on the likely effect on its price
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