Bordeaux wine production plummeted 40 per cent in 2017 due to frost – but will prices rise?
Depends upon substitution.
If people demand Bourdeaux and only Bourdeaux then yes, a reduction in supply will lead to a rise in price. If people are willing to substitute across a wider variety of drinks then, well, difficult to tell. Depends how much they’re willing to substitute.
At that point, with substitution, the question is wide open. If the same problems which led to the fall in supply also mean that what remains tastes like rat piss then substitution could be greater than the fall in supply, leading to falling prices.