Sunday, June 29, 2008

Unit1: Elasticity of supply: Scotch whisky

This Times article suggests the supply of whisky is running out in the face of rising demand

http://www.timesonline.co.uk/tol/life_and_style/food_and_drink/article4228200.ece

a) Why is supply likely to be inelastic according to the article?
b) Using a S&D diagram, show the effect on consumers of a rise in the world demand for scotch whisky

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