Q.2.1 Explain the impact of each of the following scenarios on ONLY the market for plain, bottled water in Gauteng. State whether each of the following scenarios will impact the demand or the supply curves for plain, bottled water. State whether the impact will shift the curve or cause a movement along the curve. If it is a shift, state the direction of the shift and motivate your answer. Q.2.1.1 Drinking bottled water is considered healthy, ceteris paribus. Q.2.1.2 The number of firms selling bottled water in Gauteng has increased. Q.2.1.3 The price of bottled Vitamin water (a substitute in consumption) has decreased.
Q.2.1 Explain the impact of each of the following scenarios on ONLY the market for plain, bottled water in Gauteng. State whether each of the following scenarios will impact the demand or the supply curves for plain, bottled water. State whether the impact will shift the curve or cause a movement along the curve. If it is a shift, state the direction of the shift and motivate your answer. Q.2.1.1 Drinking bottled water is considered healthy, ceteris paribus. Q.2.1.2 The number of firms selling bottled water in Gauteng has increased. Q.2.1.3 The price of bottled Vitamin water (a substitute in consumption) has decreased.
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter5: Consumer Choice: Individual And Market Demand
Section: Chapter Questions
Problem 3DQ
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![Q.2.1 Explain the impact of each of the following scenarios on ONLY the market for
plain, bottled water in Gauteng.
State whether each of the following scenarios will impact the demand or
the supply curves for plain, bottled water.
State whether the impact will shift the curve or cause a movement along
the curve.
If it is a shift, state the direction of the shift and motivate your answer.
Q.2.1.1 Drinking bottled water is considered healthy, ceteris paribus.
Q.2.1.2 The number of firms selling bottled water in Gauteng has increased.
Q.2.1.3
The price of bottled Vitamin water (a substitute in consumption) has
decreased.
Q.2.1.4 The price of plastic bottles has increased, ceteris paribus.
Q.2.1.5 Household incomes have decreased.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6028d450-3a48-4362-9dc0-b8f5b5dcf5fb%2Fe1c88119-ac81-43b6-91b3-94145be57686%2Fqkjob2m_processed.png&w=3840&q=75)
Transcribed Image Text:Q.2.1 Explain the impact of each of the following scenarios on ONLY the market for
plain, bottled water in Gauteng.
State whether each of the following scenarios will impact the demand or
the supply curves for plain, bottled water.
State whether the impact will shift the curve or cause a movement along
the curve.
If it is a shift, state the direction of the shift and motivate your answer.
Q.2.1.1 Drinking bottled water is considered healthy, ceteris paribus.
Q.2.1.2 The number of firms selling bottled water in Gauteng has increased.
Q.2.1.3
The price of bottled Vitamin water (a substitute in consumption) has
decreased.
Q.2.1.4 The price of plastic bottles has increased, ceteris paribus.
Q.2.1.5 Household incomes have decreased.
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