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.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter6: Demand Relationships Among Goods

Section: Chapter Questions

Problem 6.4P

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