The Influence of Price on Supply of the Czech Producers of Bottled Red Quality Wine

AbstractThis article focuses on the market supply of the Czech wine processing subjects. Namely, authors studied a relationships between the sales volume of the Czech producers of bottled quality red wine and the market price of this category of wine. Monthly data from the CZSO and SZIF database, years 2004–2012, were used for this price-supply analysis. Price relationships in the observed supply were investigated through two-stage Method of Cointegration developed by Engle and Granger. A sensitivity analysis of the studied price-supply relationships was based on the error correction model, which provided the coefficients of long-term and short-term price sensitivity of the bottled red wine supply