Demand and Supply Factors of Bottle Water in United Kingdom - Report
Added on 2020-07-23
11 Pages3244 Words31 Views
ECONOMICS FOR BUSINESS
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK ..............................................................................................................................................3(i) Demand and supply factors that are used to determine the price of bottle water in UK.. .3(ii) Economic policies government can use to reduce the use of plastic in the U.K.............6CONCLUSION...............................................................................................................................9REFERENCES .............................................................................................................................10
INTRODUCTIONEconomics is the study which tends to revolves around the production, consumption anddistributions of goods and services for managing the economic system of the country. The mainconcern of business economics is to analyze the issues and problems which are related to theeconomic evolution of the business organizations. For determining the price in a market,economic model of demand and supply is used by the organizations. This report is based on thedemand and supply factors that are used to determine the price of bottle water in UnitedKingdom and policies that are used by the government of United Kingdom for reducing use toplastic. TASK (i) Demand and supply factors that are used to determine the price of bottle water in UK.Demand and Supply are the concepts that use economic structure to determine a price inthe market. Demand and Supply for the goods and services are two inter related concepts, ifdemand will increase than in that case supply will also increase and if demand was decrease thansupply will also get reduced. It depends on the utility level of the individual. There are variousconcepts present in the study of economics which are related to the demand and supply of goodsand commodities (Bai, 2017). Table of supply schedule is used to identify the relationship between the price and thequantity of the goods. The supply curve is used to identify and evaluate the curve of marketsupply. According to some economist there is a huge difference between long run and short runcurve of market supply (Buckley, 2016). Various factors that effect the supply of goods and services are or variousdeterminants of supple are: Cost of production: The cost which is required to produce goods and commodities,production cost can be determined as the cost which are used in to develop the product.This can be raw materials, labors and energy materials. Expectation of the firms regarding the future prices of the products. Supplier numbers. Various determinants that effect the demand are: Source of incomePreferences of the consumer
Cost of substitutesOverall potential customerAs per the past few reports, demand for bottled water keeps on rising in United Kingdom,well according to research and studies approximately two-third portion of the earth is entirelycovered with water and out of that only 2.5 percent of the water can be considered as fresh waterand out of that very small portion is clean and can be used for drinking purpose (Loveless,2016). In United Kingdom, market of bottled water is increasing very significantly the mainreason behind this is increase in tourism in United Kingdom. As the demand of the bottled wateris increasing, automatically its supply also increasing rapidly. In United Kingdom, in past few years, there are many industries who are indulging inmanufacturing bottled water with so many different types of variants. Over 2014, in UnitedKingdom, the percentage of sales in the bottled water increased by 7 percent. There are some negative impact of bottled market on the environment, as per somereports approximately 75 percent of bottled water are just used once, as the bottled waterconsumption is increasing rapidly in United Kingdom, their landfills are flooded with discardedplastic bottles of more than 2 million tons. For staying hydrated, British people tends to drink water that is clean and full ofminerals. As per the recent data, it has been reported that approximately 1.77 billion liters ofwater if purchased by the British people. This show the increase in demand of bottled water inUnited Kingdom. The people of the United Kingdom are highly concerned with their health and theirpriority is to stay hydrated, as wellness is the top requirement for them. Demand and supply are two inter related concepts, as demand increase supply alsoincreases and as demand decreases supply also decreases. Factors that affect the price of thebottled water in United Kingdom are: As the demand increases, to cope up with the desires of the customers it is very importantfor the organizations to speed up their production and manufacturing process. In UnitedKingdom, use of bottled water is increasing rapidly, so for to meet up with its demandcompanies have to fasten up their process of manufacturing, producing and developing theproduct and this will increase its price a little bit.
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