WSET Level 4 D2 questions with correct answers

Describe what happens when relative supply and demand change CORRECT ANSWER - When supply exceeds demand: price falls, consumer have greater choice of cheaper alternatives. Producers lower price to remain competitive. Fall in prices lead to increased demand in the long run - When demand exceeds supply: price increase, consumers willing to pay higher for some wines; others simply switch to another wine or a different alcoholic drink The general factors affecting demand for wine CORRECT ANSWER - Social - Economic - Legislative - Political List major social factors affecting demand for wine CORRECT ANSWER - Change in consumption habits - Change in consumer preferences - Change in reputation - Change in spending patterns Describe how global wine consumption habits have changed since 2001 CORRECT ANSWER - Rapid growth in the first part of 2000 - Fall after 2008 financial crisis as many consumers reduce spending on non-essential products - Slight decline in recent years and due to remain stable to 2021 - Strong growth in sparkling wine sales Top five countries for total wine consumption in 2017 CORRECT ANSWER - USA - France - Italy - Germany