Buy custom Mrwhy Do Sales Of Bottled Water Grow Every Year Despite Of The Well-Known Fact That It Is Produced From The Same Tap Water?
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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 778 |
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The “would-be†demand line is shown as D? in the figure below:
If the demand for the bottled water really changed this way, we would have seen a sharp decline in price from p1 to p? and only moderate increase in the quantities sold from q1 to q?.
In reality, the market of bottled water turned the opposite direction...
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The growth that the market experienced within last 10-15 years suggests that the quantities on bottled water sold increased dramatically whereas the average price for bottled water decreased only slightly.To answer to the main question “why the sales of bottled water keep increasing?†we have to examine what other factors exist in the market that overcome the effect of a cheap substitute and shift the demand curve to the right...
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General points of the essay
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