Whiskey maker runs dry - Price elasticity of supply

Examples of products whose supply is price inelastic don’t get much better than this. An up and coming whisky maker in the US has run dry after not being able to accurately predict rapidly increasing demand. You may think this is poor business planning, but it is easier to forgive their mistake when you find out it takes 9 years in a complex maturing process to create the perfect taste. Click read more for some questions to go with the article.

Explain what is meant by price elasticity of supply. (2)

Explain two other factors that could cause supply to be price inelastic. (4)

Draw a supply and demand diagram to explain the situation in the article. (4)