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.
See PDF article here: The Elasticity of Demand for California Winegrapes. Fuller, Kate B. and Julian Alston.