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Analyzation of the Economics of
Beer and Brewing
Elizabeth Wainer
Macroeconomics 2002, Dr. Arburn
Beer is a product that is much more unique than any other drink on the shelf. I
decided to research this topic because there is a wide variety of different beers with
high and low prices which can present issues. Also, the economics of beer is special
since in some cases it is very regulated, but at the same time, many loopholes are
thrown in. The purpose of this research project is to show that as salary rises, craft
beer breweries will succeed and mass producers will start to fail.
Even though some of the cheapest beers are priced at .74 cents per bottle and
some high-class craft beers charge over twenty dollars per can, beer is still considered
an inferior good. Old studies show that as salaries rise, customers tend to abandon the
affordable, reliable, and convenient drink that is beer and explore more expensive and
lavish items such as liquor and wine. It has not been until recently that beer has
