ECON 649 Economic Analysis Worksheet 7- Supply And Demand: Price-Taking and Competitive Markets Case Study Answers. Get case study answers to questions in ECON 649 Economics Worksheet 7 from Assignment Experts Online  for Economics Assignment Analysis, MBA Assignment Sample & Essay Writing from PhD/MBA economics experts at cost-effective rates?

Case Study Answers to ECON 649 Worksheet 7 Supply and Demand

Are there a very large number of potential buyers?

Are there a very large number of potential sellers? Two manufacturers dominate the market (Coca-Cola (Mount Franklin) 50% sales & Asahi-Schweppes (Cool Ridge) 14.5% sales).

Do the buyers and sellers all act independently of one another?

Is price information easily available to buyers and sellers?

Let’s assume that local governments dramatically increase the number of water fountains available in public spaces, and Australian consumers become more aware of the environmental costs of plastic bottles.

I.Illustrate the impact on the market for bottled water.What happens to the price? (3 marks)

II. Illustrate the impact on firms producing bottled water. What happens to profit? (3 marks)

Local governments in areas where there are serious water shortages caused by drought, ban bottled water manufacturers from accessing water supplies.

I.Illustrate the impact on the market for bottled water (water is an important input for making bottled water).[1] What happens to the price? (3 marks)

II.  Illustrate the impact on bottled water manufacturers in Australia. What happens to their profit? (3 marks)Hint: What happens to the isoprofit curves of bottled water manufacturers?