Answer all the Questions. (Word Limit XXXXXXXXXXwords) 1. Assume that both the supply of bottled water and the demand for bottled water riseduring the summer but that supply increases more rapidly...

Running Head: MANAGERIAL ECONOMICS                        1
MANAGERIAL ECONOMICS                                14
MANAGERIAL ECONOMICS
Table of Contents
Answer 1    3
Answer 2    4
a.    4
.    5
Answer 3    5
a. Restricting Supply    5
. Decreasing Demand    5
c. Purchasing the Surplus at the Floor Price    6
Answer 4    6
a.    6
.    6
c.    7
Answer 5    7
a.    8
.    9
c.    9
d.    9
e.    10
Answer 6    10
a.    10
.    11
Answer 7    11
Answer 8    12
References    14
Answer 1
Desalination, water recycling, enhanced groundwater recharge and inter-basin transfers are being use to supplement the limited natural water supply to fulfill rising demands. Because an increasing per capita water usage driven by growth will exace
ate water demand, stressing the local water supply, population increase will restrict the availability of water per person. Bottled water's equili
ium price will reduce, while its equili
ium quantity will climb.
When market forces both rise, the equili
ium quantity rises as well. Because the increase in supply exceeds the rise in demand, the equili
ium price lowers. If demand falls and supply rises, equili
ium quantity may rise, fall, or remain unchanged, then equili
ium price will fall. If demand falls and supply falls, the equili
ium quantity falls and the equili
ium price may rise, fall, or remain unchanged. The ability of a region to deliver clean water to meet the demands of the population can be measure using a water supply and demand balance index.
The water supply and demand balance index can therefore be use as one of the primary foundations for developing and implementing national water policy. Bottled water is water that has been package in glass or plastic bottles for drinking. Bottled water can be ca
onate or not. Despite the fact that ca
onated soft drinks have become more consumers that are popular, still prefer bottled water. When compared to ca
onated water sold at higher prices per gallon, water supplied in huge bottles holding one to 2.5 gallons is relatively cheaper.
Demand for bottled water is growing in emerging countries as economic stability and u
anization increase. Consumer awareness of safe and clean water has fueled the expansion of the bottled water business in emerging markets. With all other factors remaining constant, an increase in supply will cause the equili
ium price to decline, but the amount requested will rise.
When supply falls, the equili
ium price rises and the amount required decreases. When there is a surplus of inventory, sellers will normally decrease prices to clear it out and when there is a shortage, they will raise prices to take advantage of the higher demand. The prices will convergence toward an equili
ium price in both circumstances, which may be greater or lower than the prior equili
ium price.
Answer 2
a.
In the state of Florida, orange juice (OJ) is a vital part of the economy. Florida is by far the largest orange juice producer in the country, accounting for more than 90% of all orange juice consumed in the United States. Financial lenders, fertilizer firms, agricultural chemical companies, makers of greenhouse and nursery goods, manufacturers of plastic pipes and fittings, other national and provincial businesses and non-education government are all intimately tied to Florida OJ production.
If a medical supply company claims that orange juice might help prevent cancer, demand for orange juice will skyrocket. The demand curve swings to the right, resulting in a rise in both price and quantity, when a severe storm wipes off half of Florida's orange crop. The availability of oranges in the state drops and the supply curve swings to the left. As a result, the price of oranges rises while the quantity of oranges decreases. As an outcome, the price of oranges at equili
ium will rise.
The volume of orange juice demanded is influence by a city's demographics. At various levels, those groups respond to changes in pricing, cross price, income and advertising. This data suggests that different marketing methods should be implementing depending on the demography. The primary purpose of the orange juice industry is to increase demand and this data will help them achieve that goal.
.
Demand for orange juice rises as it grows more popular and the demand curve for orange juice swings rightward. The cheap harvesting robot reduces the cost of producing orange juice, resulting in an increase in availability and a rightward change in the supply curve for orange juice. The quantity at equili
ium rises. However, the impact on the equili
ium price is unclear. If the change in supply exceeds the change in the quantity demanded, the supply curve shifts more than the demand curve shifts and the market equili
ium declines.
Answer 3
a. Restricting Supply
The predetermined restriction about how much a seller can ask for an item or
and is known as a price ceiling. Price ceilings, which are cu
ently fixed by legislation, are generally placed on necessities such as energy and food supplies when they're too expensive for regular consumers. As indicated by Fabianto, Warsito, Wardana, Irenita and Keke (2019), Simply said, a price ceiling is a cost control tool. Price ceilings can be advantageous in that they maintain staples affordable, at least in the short term. Economists, on the other hand, debate whether such ceilings are useful in the end.
. Decreasing Demand
A loss in income provided an item is a convenience product, a fall in the price of a substitute and an increase in the cost of a supplement can all lead demand to fall and create a shift to the left of the demand curve. When demand falls but supply remains constant, the demand curve shifts to the left. At the traditional equili
ium point, as demand falls, an excess supply condition occurs. As a result, there may be more competition among merchants to sell their wares, lowering the price (Pratama, Darmawan, Astanti, Ai & Gong, 2019).
c. Purchasing the Surplus at the Floor Price
By determining the price above the market equili
ium, price floors generate surpluses. The quantity given surpasses the quantity required at the floor price. Price floors in agriculture have resulted in sustained surpluses of a number of agricultural products. Governments frequently try to help farmers by establishing price ceilings in agricultural markets. As mentioned by Griffith, O'Connell and Smith (2020), a price floor is a minimum allowed price that...