Theme 1: Elasticity of Supply in action: Where has all the whisky gone?

An almost perfect example here of inelastic supply in action. By law, all Scotch whisky must be aged for a minimum of three years and it takes several years for new distilling capacity to come online.

Questions for Tammy to answer....

Why has the price of whisky gone up? (use a supply & demand diagram in your answer)

What does the article suggest about the elasticity of supply of malt whisky?