Case -3

The Taif region in Saudi Arabia is known in the Middle East for its cooler climate and fertile lands. Over the course of history, it has been renowned for its ability to produce some of the highest quality fruits in the region, especially grapes. Fruits from the Taif region have long been a common sight in supermarkets in neighboring countries in the Arabian Gulf. However, variations in weather patterns coupled with a larger population and the ensuing increased farming have depleted the region's water supplies, devastating many of the Taif grape crops.

Required:

1)How will this affect the price of Taif grapes?

2)Assuming only the Taif region is affected by weather and water depletion, how will other producers of grapes in the region be affected?