A regional microbrewery, 'Hoppy Craft', observes a sharp increase in the market price of its seasonal India Pale Ale (IPA). In which of the following scenarios is the price elasticity of supply (PES) for this IPA most likely to be relatively inelastic in the short run?
The brewery holds a large inventory of packaged IPA cans in temperature-controlled warehouses, ready for immediate dispatch.
The fermentation vessels can easily be switched from brewing lagers to IPAs with virtually no downtime or cleaning costs.
The unique hops required for this IPA can only be harvested once a year and have a long maturation period, with no viable substitutes.
The brewery is operating at only 60%60\%60% of its fermentation capacity and has access to a highly flexible pool of agency staff.
256 exam-style questions on AQA A Level Economics 1.3 Price determination in a competitive market, covering 1.3.1 The determinants of the demand for goods and services, 1.3.2 Price, income and cross elasticities of demand, 1.3.3 The determinants of the supply of goods and services, 1.3.4 Price elasticity of supply, 1.3.5 The determination of equilibrium market prices, and 1.3.6 The interrelationship between markets. Each one has a worked solution and a mark scheme showing where the marks go.