Question

After a wildly successful advertising campaign by the German beer industry, many beer executives felt giddy about the stratospheric beer prices. But other execs feared that such high prices would cause demand to decline, which would then cause prices to drop. Are these concerns valid, or do the Germans need to take economics lessons? (It might help to draw a graph)

		T he price of beer will shift the demand of beer.
		T he price of beer will shift the supply of beer.
		The price of beer will not shift the demand or supply of beer.

Answer 1