What factors have contributed to the rising prices of BC Merlots?
a. Increased demand for BC Merlot
b. Decreased supply of BC Merlot
c. Decreased production costs for BC Merlot
d. Increased production costs for BC Merlot
Final Answer: Increased demand for BC Merlot
Explanation: The rising prices of BC Merlot wine can be best explained by increased demand for BC Merlot. While it is true that prices for French oak barrels used for wine storage have dropped and consumer incomes have risen, these factors do not directly explain the rising prices of BC Merlots. If the supply of BC Merlot had decreased or production costs had increased, it would have caused a decrease in supply and an increase in prices. However, since the question states that consumer incomes have risen, it implies that people are willing and able to buy BC Merlot at higher prices, which indicates increased demand.