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"But Ijust paid 1.69 for this bottle of wine last week.How is it that the price is 2.25?"

There are at least three things going on that have caused the price of wine to rise.All haveto do with the supply and demand factors of economics.

The first factor is that people are drinking more wine than ever before.This demand formore wine has increased wine sales in America at the rate of 15 percent a year.

The second factor is that the supply of wine has stayed relatively the same, which meansthat the same number of bottles is produced each year.Wine producers are trying to open upnew land to grow more grapes.But in at least three wine producing areas of the world-France,Germany, and California --- new vineyards(葡萄园)will not be useable in the near future.Wines are produced in other countries, such as Italy, Spain, and Portugal, as well as Argentine,Australia, Austria, and Chile.And these wines will be seen more often on the American market.But none of these countries will be able to fill the good wines.

The third factor is that costs of wine production are soaring.The workers who make wineare asking for more money, and the machinery needed to press the grapes is becoming moreexpensive.

When the demand for something is greater than the supply, prices go up.When productioncosts, meaning the price of labor and machinery rise, the producer adds this increase to theprice of the wine.For these reasons, that bottle of wine now costs 2.25 instead of 1.69.

1.What is the main idea of this passage?

A.Every year people drink more wine.

B.Countries won't be able to fill the demand for good wines.

C.The prices of things go up when the demand for them is greater than the supply.

D.The supply of wine will always be less than demand.

2.This passage is written to      .

A.describe where wine is produced

B.persuade people drink more beer

C.explain why the price of wine is rising

D.describe why wine is a favorite drink to many Americans

3.Theunderlined word "soaring" means"___ .

A.adding quickly

B.reducing fast

C.demanding badly

D.increasing fast

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