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Whisky in demand but supply is inelastic!
28th June 2008
The Times carried a good story today related to elasticity of supply in the Scottish whisky industry…
Demand for whisky is soaring especially in the Far East but supplies of single and blended malts simply cannot keep pace with demand.
“Sources in the whisky industry say that it is responding with high levels of investment in plant. The problem is getting supply levels right. Too much, and there will be a glut on the market; too little, and rival drinks could threaten the bonanza.”
This could be a good example to use with AS micro students in the autumn.
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.