In 2008 the US experienced what came to be known as the Great Recession, as a result of the Housing Financial Crisis. Many households suffered an abrupt decrease in income, because many people lost their jobs. Markets for most non-inferior goods saw a decline in Demand.

We will consider the price for two alcoholic beverages: aged whisky and craft beer. Aged whisky takes years to produce because it must age in barrels for several years after being distilled. Craft beer only takes a few weeks from start to finish. Assume both craft beer and whisky are normal goods.

A) Which of the two alcoholic beverages do you expect will have a more inelastic supply?

B) Based on your answer for A), compare the price changes for the two markets during the Great Recession, compared to the situation before the crisis. Feel free to use a graph for your explanation.