Whisky in demand but supply is inelastic!

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.

The rest of the article is here

Unit 2 Macro: Cyclical and Structural Economic Issues Facing the UK [23 May 2012]
Unit 2 Macro: Evaluation on Supply-Side Policies [21 May 2012]
Unit 2 Macro: The Current Account of the Balance of Payments [20 May 2012]
Unit 2 Macro: The Importance of Productivity [20 May 2012]
Q&A: What do we need to know about output gaps? [20 May 2012]
Unit 2 Macro: The Output Gap [20 May 2012]
Revision notes on unemployment [20 May 2012]
Unit 1 Micro: Revision Presentation on Elasticity of Supply [16 May 2012]
Unit 1 Micro: Revision Presentation on Elasticity of Demand [16 May 2012]
Unit 1 Micro: Revision on Rice Prices [13 May 2012]
Unit 1 Micro: Price Elasticity of Supply [13 May 2012]
Unit 1 Micro: Price Elasticity of Demand [13 May 2012]
Unit 1 Micro: Economics of Cocoa Prices [12 May 2012]
Unit 1 Micro: Price Volatility in Markets [12 May 2012]
Unit 1 Micro: Differences between Merit and Public Goods [12 May 2012]
Unit 2 Macro: Revision Notes on Supply-side Policies [10 May 2012]
Unit 1 Micro: True and False Revision Questions on Elasticity [10 May 2012]
Unit 2 Macro: Unemployment Glossary [5 May 2012]
Macro Revision: Putting Things in Context [29 Apr 2012]
“One Direction” and Elasticity [26 Apr 2012]
Tullow Oil and African Development [25 Apr 2012]
Unit 2 Macro: Heathow’s Capacity and Connectivity Crunch [22 Apr 2012]
Ukraine Hotel ‘Bandits’? [12 Apr 2012]
Unit 3 Micro: Revision on Monopoly Price and Output [6 Apr 2012]
Unit 1 Micro: Revision on Price Elasticity of Supply [5 Apr 2012]
Unit 1 Micro: Revision on Producer Surplus [4 Apr 2012]
Unit 4 Macro: Productivity Improvements in China [3 Apr 2012]
Unit 1 Micro: Revision on Producer Subsidies [2 Apr 2012]
Unit 3 Micro: Revision on Scale Economies, Technology and Prices [1 Apr 2012]
Unit 1 Micro: Revision on Maximum Rents in Housing [1 Apr 2012]
Unit 3 Micro: Revision on Fixed and Variable Costs [31 Mar 2012]
Unit 1 Micro: Brazilian coffee buffer stock hit by falling prices [29 Mar 2012]
Unit 1 Micro: Breaking Down the Cost of Gas [4 Mar 2012]
Unit 1 Micro: Highest and Lowest Paid Jobs in the UK [26 Feb 2012]
Unit 1 Micro: Public Goods [11 Feb 2012]
Russia’s monopoly power over gas supplies [5 Feb 2012]
Unit 4 Macro: Focus on India - Supply Side Issues [25 Jan 2012]
Unit 4 Macro: Natural Disasters and their Economic Impact [7 Jan 2012]
Unit 1 Micro: Biomass Subsidies and Timber Prices [30 Dec 2011]
Unit 2 Macro: The UK Housing Market in 2011 [26 Dec 2011]
Unit 3 Micro: Sub Normal Profits - BP Leaves the Solar Industry [21 Dec 2011]
Unit 3 Micro: Oligopoly and Duopoly in Bus Markets [20 Dec 2011]
Unit 4 Macro: India - the Road Ahead [7 Dec 2011]
Unit 1 Micro: Inside a Biscuit Factory [1 Dec 2011]
Unit 3 Micro: Unilever hit by rising costs [6 Nov 2011]
Unit 4 Macro: Should TNCs make full disclosure on factory wages? [30 Oct 2011]
Unit 2 Macro: Economic Importance of Investment [19 Oct 2011]
Unit 1 Micro: Homework Assignment on Market Prices [2 Oct 2011]
Unit 1 Micro: The Supply and Demand Rap! [28 Sep 2011]
Unit 1 Micro: Exercise on Equilibrium Market Prices [27 Sep 2011]
Putting the “discrimination” into price discrimination! [26 Sep 2011]
Unit 1 Micro: Exercise on Market Supply [26 Sep 2011]
Unit 3 Micro: Fixed and Variable Costs [18 Sep 2011]
Unit 4 Macro: Baltic Dry Index and Global Weakening [19 Aug 2011]
Unit 1 Micro: Cotton Prices and the Retail Price of Clothing [13 Jul 2011]
Unit 3 Micro: Oligopsony - Dairy Losses Drive Farmers from the Fields [10 Jul 2011]
AS Macro Key Term: Supply-Side Policies [25 May 2011]
AS Macro Key Term: Demand Pull Inflation [24 May 2011]
AS Macro Key Term: Deflation [24 May 2011]
AS Macro Key Term: Cost Push Inflation [24 May 2011]
AS Macro Key Term: Economic Recovery [23 May 2011]
AS Macro Key Term: Recession [23 May 2011]
AS Macro Key Term: Spare Capacity [23 May 2011]
Unit 3 Micro: Monopsony Power in Markets [19 May 2011]
A2 Micro: The Importance of Profit [19 May 2011]
A2 Micro: High and Low Marginal Cost Products [19 May 2011]
A2 Micro: Innovation and Economic Policies [18 May 2011]
A2 Micro: Innovation Efficiency and Welfare [18 May 2011]
A2 Micro: Moving Away from Profit Max [18 May 2011]
Unit 3 Micro: Diseconomies of Scale [18 May 2011]
The economics of price gouging after a natural disaster. [16 May 2011]
AS Micro: What´s really behind the oil price rise? [10 May 2011]
AS Micro: Commodity Prices [5 May 2011]
AS Macro: Extended House Price Deflation? [5 May 2011]
AS Micro: Rising Global Food Prices [2 May 2011]
AS Micro: Mock Exam Question on Sugar Prices [28 Apr 2011]
AS Micro: Importance of Elasticity of Supply [23 Apr 2011]
Key AS Micro Terms: Taxes and Subsidies [18 Apr 2011]
Key AS Micro Terms: Competition and Monopoly [17 Apr 2011]
Key AS Micro Terms: Costs and Profits [16 Apr 2011]
Key AS Micro Terms: Prices [15 Apr 2011]
AS Micro: Prices for New and Second Hand Cars [9 Apr 2011]
AS Macro Key Term: Aggregate Supply Shock [6 Apr 2011]
AS Micro Revision: Banana Prices [1 Apr 2011]
AS Macro Revision: Investment Spending [12 Mar 2011]
Never Mind Plan B - Plan V needed for the UK Economy! [17 Feb 2011]
The US-China Trade Deficit [14 Feb 2011]
Shared Value and the Limitations of CSR [12 Feb 2011]
An Aggregate Supply puzzle [24 Jan 2011]
Economics Q&A: How might rising food prices affect food retailers and manufacturers in the UK? [16 Jan 2011]
Economics Q&A: What economic factors affect the demand for new cars? [9 Jan 2011]
A2 Macro Revision: The Stock Cycle [31 Dec 2010]
Manufacturing growth in the UK [30 Dec 2010]
China limits rare earth exports [30 Dec 2010]
Tacit collusion between oil producers and consumers? [12 Dec 2010]
OCR A2 Economics F585 (Feb 2011) - Price Volatility [8 Dec 2010]
OCR A2 Economics F585 (Feb 2011) - Suggested Reading [7 Dec 2010]
Energy Oligopoly - Price Investigation is Launched [26 Nov 2010]
Economics at the Movies - The Yeo Valley Rap [5 Nov 2010]
October Edition of EconoMax now Available [3 Nov 2010]

ECONOMICS TEACHER RESOURCE NEWSLETTER

Join over 6,000 other Economics Teachers in the UK and around the world who receive the tutor2u regular Economics Resource Email Newsletter. Get special offers, first news of latest resources, teaching ideas, conferences and workshops + loads of great ideas for teaching economics from our blog authors.