Well, theorectically, in a competitive market, prices would be set by the intersection of supply and demand at somewhat above the cost of production. I guess this would be long term, whatever long term means. I suppose that buying a bottle of Scotch today has aspects of buying Scotch futures, since that bottle is still going to be good to drink in the coming decades. So, I suppose you are right, that current and projected future costs are going to figure into the price for ten year old whisky, by shifting the supply curve. Maybe the demand curve is shifted, too. I am willing to pay more today if I think a good will be more expensive in the future because of rising costs. I doubt the market for Talisker is really a competitive one and my guess is that price is probably based more on consumer perceptions than actual past, current, or future costs. I wonder how much it really costs to produce a bottle of Talisker. I should probably be willing to pay $80 for a bottle of Talisker now because the price will be as high or higher in the future. I would expect Talisker and/or the middle men and/or the tax men to charge as much as they think they can to maximize profits.Well, yes and no.
If they've been paying about the same for heating and lighting month in month out for years, and all of a sudden the bill doubles or triples, they're not going to wait a decade to recoup those costs.
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