Knob Creek

Look at this article about the whisky industry...








Extract:

"How do you run out of stock in the middle of a global recession? The Kentucky bourbon brand Knob Creek claims that's what has happened at its distillery. Stocks of the premium whiskey have run dry and the next batch of the stuff won't be ready until November.

Knob Creek's owner, Beam Global, ran full page advertisements in US weekend newspapers apologising to bourbon devotees. The promotions showed an empty bottle of Knob Creek under the words "thanks for nothing". The firm has been making the most out of its predicament - it mailed out empty bottles to journalists, just to ram the point home, and it is handing out t-shirts trumpeting "the drought of 2009".

Bill Newlands, president of Beam Global, says the problem is that Knob Creek has to age for nine years in a complex maturing process to come up with a sufficiently full-bodied taste to satisfy bourbon anoraks. Back in 2000, the company apparently did a poor job in predicting supply. Oddly, Knob Creek says it is experiencing "double-digit growth" despite the economic meltdown."

Consider the supply of Knob Creek whisky.

In your blog:

a. put a summary of the article
b. link to the article
c. explain whether the supply is elastic or inelastic - and draw a diagram to illustrate your answer