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A: The answer is actually quite involved as there are several factors which come into consideration when determining the price of a wine. The most basic of these are location, quality and winemaking style. It is actually more expensive to plant in certain regions than other. For example, land is more scarce in Napa versus Sonoma, therefore driving prices up. Second, the quality of grapes and the land which they are planted on undoubtedly affect how much the wine created from them costs. Better quality obviously means higher prices. Last, certain winemaking processes are more expensive than others. A great example of this is the use of oak. While some argue that French oak lends a smoother, butterier finish to wines than American, it's higher demand means higher prices. All of these factors combined are what separate the $8 wines from the $20 wines.

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