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-   -   Funny things you've overheard about beer (http://www.homebrewtalk.com/f14/funny-things-youve-overheard-about-beer-346883/)

 jerrodm 12-12-2012 10:33 PM

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Quote:
 Originally Posted by troyh You have it backwards. A business can afford to sell a product for the marginal cost to make it so they will continue to do it. But if their costs suddenly increase (hop prices go up) they can't just charge more, they will stop making it or go out of business. You seem to think every consumer is standing there in aisles looking at products and quickly summing the manufacturing costs to see if they should buy the product. Brewers making higher ABV beers know people will pay more for them so they make them. They don't just make any beer they want and force people to buy it. Again, if they could they'd increase their costs to charge more. Yet they are always working to lower their costs. Are they idiots? Btw, saying "...but I'm sure you're not that interested in the explanation" is being a dick.
Let's take your example of an increase in a major input--hops.

If that happens, the marginal cost curves will go up for all breweries that use the input. This would cause the supply curve for beer to shift upwards, reducing the quantity of beer that is sold at equilibrium. And the price will increase, unless demand for beer is completely inelastic, which there's no reason to believe that it is. The new equilibrium price (like the old price before it) will be where price is equal to the marginal cost of producing the last unit of beer, which is simultaneously equal to the marginal benefit of the last consumer.

I drew some quick graphs that illustrate the case, sorry couldn't figure out how to put them directly in the post. One is before the price increase, the other is after the price increase. Hope that clears it up for you.

 jerrodm 12-12-2012 10:33 PM

2 Attachment(s)
Quote:
 Originally Posted by troyh You have it backwards. A business can afford to sell a product for the marginal cost to make it so they will continue to do it. But if their costs suddenly increase (hop prices go up) they can't just charge more, they will stop making it or go out of business. You seem to think every consumer is standing there in aisles looking at products and quickly summing the manufacturing costs to see if they should buy the product. Brewers making higher ABV beers know people will pay more for them so they make them. They don't just make any beer they want and force people to buy it. Again, if they could they'd increase their costs to charge more. Yet they are always working to lower their costs. Are they idiots? Btw, saying "...but I'm sure you're not that interested in the explanation" is being a dick.
Let's take your example of an increase in a major input--hops.

If that happens, the marginal cost curves will go up for all breweries that use the input. This would cause the supply curve for beer to shift upwards, reducing the quantity of beer that is sold at equilibrium. And the price will increase, unless demand for beer is completely inelastic, which there's no reason to believe that it is. The new equilibrium price (like the old price before it) will be where price is equal to the marginal cost of producing the last unit of beer, which is simultaneously equal to the marginal benefit of the last consumer.

I drew some quick graphs that illustrate the case, sorry couldn't figure out how to put them directly in the post. One is before the price increase, the other is after the price increase. Hope that clears it up for you.

 sirmichael 12-29-2012 05:27 PM

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From Women's Health Magazine about Guiness and other light beers.

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 WesleyS 01-12-2013 02:27 AM

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Quote:
 Originally Posted by WesleyGatzke I've heard too many dumb things about beer to keep track of, but one thing that made me chuckle (and cringe) recently was on the cover of a book about beer. My wife bought me a book for Christmas titled "BEERS OF THE WORLD - Over 350 Classic Beers, Lagers, Ales, and Porters[/B"] *shudder* My immediate thought: if someone doesn't properly understand those relationships, why would they write a book about it?

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You mean this?

My wife bought me the same book as part of a whole beer themed anniversary gift last year.

 WesleyBrewViking 01-17-2013 07:38 PM

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Quote:
 Originally Posted by PhelanKA7 Japan. It is always Japan.
Sorry, this is a little bit but I had to :

 MustBeZ 01-20-2013 06:49 PM

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This explains everything!

 Krovitz 01-25-2013 02:11 AM

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Gillette Stadium in Foxboro MA serves Sam Adams. They even had the winner of the Sam Adams homebrew challenge on tap a couple years back for the football season.

On topic, my mother got me a bottle of beer for Christmas. She told the employee at the liquor store I like IPAs. He said, "if he likes IPAs, he'll love this..."

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I figure he is either clueless or an @\$\$hole.

 GrogNerd 01-31-2013 02:01 AM

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Howdy is a beagle. purebred, but no papers. rescued almost 3 years ago and he will be (edit) 6 at the end of February

got his name from the freckles on his nose. we thought he looked like Howdy Doody

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 GrogNerd 02-06-2013 03:40 PM

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Quote:
 Originally Posted by stratslinger Don't remember if I posted this one or not, but a summer or two ago, I had my neighbor over for a quick tasting... Once he had sampled each of the four beers I had on tap, he looked at me with this shocked look on his face and said "Wow - they all taste different, I can't believe it!". I wanted to say something like "Really genius, why else would I have four different taps?" but instead I think I just said something like "yup, that's the idea..." In retrospect, I'm glad I only poured small samples for him.
let's see yours!

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 GrogNerd 02-22-2013 08:45 PM

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Quote:
 Originally Posted by fizgig I saw on facebook "I didn't know bock could be a lager?"
I didn't know bock could be an ALE

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