Earl, You Better Sit Down...... Beer Prices to Rise Big Time in 2008....

Ahh, Two Brunettes and a Blonde - Just How I Like It !!

Enjoy that beer while you can, because the price of beer is expected to rise a lot by next year. Why? Like most things , it's a simple case of supply and demand.....

Ms. X, pay attention... The amount of hops and barley produced this year has dropped significantly. Therefore the price of the major beer ingredients will be higher . Supply drops, demand stays the same, prices rise. Now, since most beer drinkers will drink no matter the price is - right, Earl?? - the demand will not drop. This is the demand elasticity. So, in real world terms, the price of beer will be higher, but the consumers will pay for it in the end. This ends today's lesson.

How is the low supply expected to hit producers? Well, if you have a local brewer or a favorite microbrew, you're going to get hit first. If you're a Bud or other big brand drinker, it might take longer. So, drink up while the beer isn't so expensive....

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