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1.2 How markets work

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Question 34

In recent years, a global surge in the popularity of premium spirits has led to a dramatic increase in the market price of 18-year-old single-malt Scotch whisky. Despite these record-high prices, distillers have been unable to increase the quantity supplied of this product to meet the growing demand.

Explain one reason why distillers of aged single-malt whisky find it difficult to increase the quantity supplied in the short run.

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1.2 How markets work Questions

  1. A Level
  2. /Economics
  3. /1.2 How markets work