Sometimes it can be a bit baffling if you think about how a bottle of wine got its price tag. Logically you would think that better tasting wines would cost more, but any experienced wine lover can tell you that is not always true. So you have to wonder, what does determine the cost of a wine. Well the first and biggest determining factor are the grapes. Grapes that are rarer or have a more complex flavor tend to not produce as much per acre. So to make it worth the time and effort to grow them, they have to charge more for wine made from them. Production cost can add, while not too much, a little bit to the final price of a bottle. Think about the oak barrels wine is aged in, oak costs. So while not a huge factor, this can add a few dollars to the final price tag.
But one of the most volatile aspects of the cost of wine is popularity. Yes, supply and demand plays a big role in how much you pay for wine. So it might be better to avoid that vintage all of your friends have been spending money on and try to find an unknown gem. A duck decanter 
of your new deal at a party could create a trend.
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