Question by dreams: Assume the advertisement about green house effect encourage people to drink fountain instead of bottled water?
1) What will happen to the demand cuve of the bottled water?
2) If the bottled water company such as Aquafina decided to lower the prce for its product, what will happen to the demand curve fot its product, and what will happen to the demand curve for other brands’ bottled water?
Best answer:
Answer by nm
Not assuming but actually fountain is more recommended than bottle water.There is some speculation about bottled water causing cancer.
To answer your question If the awareness grows than
1) The demand curve will have short span decline. Say a few points.
2)If aquafina lowered its product price than maybe sales will increase and the demand curve will incline. Depends how they advertise it and convince the market.
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