Economics for Business: Bottled Water Demand, Supply, and Plastic Use

This report provides an economic analysis of the bottled water market in the United Kingdom. It begins with an introduction to economics, focusing on the concepts of demand and supply and their application to the bottled water industry. The report examines the factors that influence the price of bottled water in the UK, including production costs, consumer preferences, tourism, and brand goodwill. It also explores the impact of increasing demand on supply and pricing. Furthermore, the report investigates government policies aimed at reducing plastic use, such as promoting reusable bottles, waste prevention programs, and recycling initiatives. The analysis highlights the environmental concerns associated with plastic waste and the measures taken to mitigate its effects, concluding with a discussion on the importance of maintaining ecological balance and sustainability.

ECONOMICS FOR BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................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.............6
CONCLUSION...............................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Economics is the study which tends to revolves around the production, consumption and
distributions of goods and services for managing the economic system of the country. The main
concern of business economics is to analyze the issues and problems which are related to the
economic 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 the
demand and supply factors that are used to determine the price of bottle water in United
Kingdom and policies that are used by the government of United Kingdom for reducing use to
plastic.
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 in
the market. Demand and Supply for the goods and services are two inter related concepts, if
demand will increase than in that case supply will also increase and if demand was decrease than
supply will also get reduced. It depends on the utility level of the individual. There are various
concepts present in the study of economics which are related to the demand and supply of goods
and commodities (Bai, 2017).
Table of supply schedule is used to identify the relationship between the price and the
quantity of the goods. The supply curve is used to identify and evaluate the curve of market
supply. According to some economist there is a huge difference between long run and short run
curve of market supply (Buckley, 2016).
Various factors that effect the supply of goods and services are or various
determinants 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 income
 Preferences of the consumer

 Cost of substitutes
 Overall potential customer
As 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 entirely
covered with water and out of that only 2.5 percent of the water can be considered as fresh water
and 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 main
reason behind this is increase in tourism in United Kingdom. As the demand of the bottled water
is increasing, automatically its supply also increasing rapidly.
In United Kingdom, in past few years, there are many industries who are indulging in
manufacturing bottled water with so many different types of variants. Over 2014, in United
Kingdom, 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 some
reports approximately 75 percent of bottled water are just used once, as the bottled water
consumption is increasing rapidly in United Kingdom, their landfills are flooded with discarded
plastic bottles of more than 2 million tons.
For staying hydrated, British people tends to drink water that is clean and full of
minerals. As per the recent data, it has been reported that approximately 1.77 billion liters of
water if purchased by the British people. This show the increase in demand of bottled water in
United Kingdom.
The people of the United Kingdom are highly concerned with their health and their
priority is to stay hydrated, as wellness is the top requirement for them.
Demand and supply are two inter related concepts, as demand increase supply also
increases and as demand decreases supply also decreases. Factors that affect the price of the
bottled water in United Kingdom are:
As the demand increases, to cope up with the desires of the customers it is very important
for the organizations to speed up their production and manufacturing process. In United
Kingdom, use of bottled water is increasing rapidly, so for to meet up with its demand
companies have to fasten up their process of manufacturing, producing and developing the
product and this will increase its price a little bit.

Profit Margin,as the demand of the bottled water is increasing its supply also taking rapid
enhancement, in that case profit margin of the companies which produce bottled water also
increasing.
Cost of goodwill, Products like bottled water comes in various sizes, and for each size its
cost is different. For example, the price of the 250 ml will be different from the 350 ml. If the
brand is famous among the people of United Kingdom due to their goodwill than they can
charge 2 or 3 rupees more than other companies.
Cost of the bottled water depends on its demand, if demand is high than its price is also
high and when demand is low than prices are also comparatively low.
United Kingdom is the very famous country among tourist as it very famous tourist
destination, people from all over the world come to visit United Kingdom, as it is not possible
for the visitors to carry large large water cans along with them while traveling, so they use the
bottled water for the purpose of drinking water. Tourist always prefer bottled water rather than
tap or any other kind of water as it is easy for them to carry bottled water along with them.
During the tourist season in the United Kingdom, the demand of the bottled increases 2
times on an average as demand increases it supply also increases. And it lay emphasis on its
price (Melé, 2015).
In United Kingdom, there are several educational institutions, bottled water is used by
students of the institutions at a very high rate, well but due to some environmental side effects of
bottled water canteens of some institutions of United Kingdom banned the use of bottled water
into their campus, but still its demand is very high among the students.
The basic requirements of the British people is to stay hydrated and healthy and their
consumption of water is also very high, for this thy use clean and mineral water. As the demand
of bottled water is high in United Kingdom, than its supply is also very high.
As the demand of the bottled water is increasing in the United Kingdom, its competition
is also increasing, now there are various industries who deals in manufacturing bottled water in
the United Kingdom; Belu water, Blue Keld, Celtic Vale are some of the most common brand of
the bottled water in United Kingdom. The prices of Belu water is high as comparison to other
brands because it is in high demand in United Kingdom, because it contains hundred percent
carbon neutral and all of their profit is being given to charity for water-aid. It is a very famous
and proud brand of United Kingdom. As the demand increases, to cope up with the desires of

the customers it is very important for the organizations to speed up their production and
manufacturing process. In United Kingdom, use of bottled water is increasing rapidly, so for to
meet up with its demand companies have to fasten up their process of manufacturing, producing
and developing the product and this will increase its price a little bit (McCabe, 2015).
(ii) Economic policies government can use to reduce the use of plastic in the U.K.
Using plastic is very harmful for the environment, it create adverse effect on both land
and water. The material used for producing plastic is very harmful and it takes so many years for
it to get soluble in the water.
Plastic is very harmful for the animals who are living on lands for the lives under water.
Fishes and all the other water animals get highly effected with the usage of plastic as people
directly throws it in the water.
The government is the ruling body of the country, and it is very important for them to
maintain their biodiversity and environmental uniformity. The government of the United
Kingdom constructed policy for waste and recycling as their prime motive is to move towards
the zero waste economy. The United Kingdom government establish various measures to
increase the reduce, reuse and recycle of the plastic to limit its effect on the environment.
Using plastic creates several adverse effects on the environment of United Kingdom, so
it is very important for their government to reduce the use of plastic materials in order to main
the uniformity in their ecological system (Xanthos, 2017).
For reducing the use of plastic material government of United Kingdom should construct
various plans and policies in order to maintain the environmental system of the United
Kingdom.
Various measure that are taken by the government of United Kingdom are:
 Creating and generating awareness for carrying a reusable water bottles.
 Reducing use of plastic items
 Avoiding excessive packaging of food with plastic
 Using refill stations for the powders and detergents
 Reduction in use of disposable cutlery
 Avoiding micro-beads
 Carrying shopping bad made of cloth rather than plastic.

Such measure taken by government of United Kingdom, for reducing use of plastic
creates awareness among their residents regarding the ill effects of the plastic and its usage.
Various programs are organized by the government of United Kingdom for generating
awareness among the people such as,The waste prevention programme for England, the main
aim of these programme is to create awareness among the people of the England regarding the ill
effects of the usage of the plastic and wastage created by its usage. This programme revolves
around the idea of encouraging the businesses to take step towards the reduction of the usage of
the plastic for maintaining sustainability into their working, it also provides ides for producing
goods and services of better quality and support the measures which are taken to maintain the
balance in the environment. This act also create measure to encourage the cultural values for
enhancing the awareness among the organizations and individuals regarding the use of single use
plastic. There are several organization who uses plastic for packaging purpose are various kinds
of other purposes in the organization (Rafieisakhaei, 2016).
Government of United Kingdom also initiates the policy of recycling to reduce the
adverse effects of the plastic towards the environment, the government has made it much easier
for the organizational members and the local residents to recycle their plastic products in a much
simpler manner. From packaging to vehicles each and every item contains little or large amount
of plastic into it. Government of United Kingdom, also started to charging single use plastic
bags, for reducing it usage, its main aim is to reduce the use of plastic bags in order to save the
environment (Worm, 2017).
Maintaining the ecological system of the country is very important for the government of
the country it their duty and responsibility to keep he country clean as it is the hub of core
tourist, the countries who are famous among the tourists it is very important for them to
maintain their cleanliness and hygiene in order to provide comfort and satisfaction to the tourists.
Using plastic is very harmful for the environment and the species living it, the material from
which plastic is made of is very harmful for both land and water animals and the wastage
occurred from the plastic is also very harmful and create adverse effect on the environment. So it
s very important for the government to take various measure and to construct plans and policies
in order to provide maintenance to the ecological system. The government is the ruling body of
the country, and it is very important for them to maintain their biodiversity and environmental
uniformity.

The government of the United Kingdom constructed policy for waste and recycling as
their prime motive is to move towards the zero waste economy. The United Kingdom
government establish various measures to increase the reduce, reuse and recycle of the plastic to
limit its effect on the environment.
The economic policies of the country used to analyze the different systems for the level
of the economy. The economic policy of the country is sub divided into two factors, fiscal and
monetary policy (Rochman, 2016).
Government can take various measure to regulate the use of single use plastic in the
country, the main purpose of the economic growth of the country is to establish the economic
progress and advancements. Government is responsible for the environmental development of
the country. Only government has the power to banned the use of any thing permanently. For the
government of the United Kingdom, it is very important to take some serious and strict measures
to banned the use of single use plastic, Economic policies government can use to reduce the use
of 'single use plastic' in the United Kingdom are:
Decrease the production of plastic: If government of the United Kingdom will stop the
production of the plastic than it is not further used for several kinds of purposes like packaging,
water bottles and in the organizations etc., government is the ruling body of the country, and
only government has the power to apply strict rules and regulations on the working of the
organizations. They can measure and control the production of the single use plastic in order to
save the country from the adverse effects of the plastic (Ruttan, 2014).
Controlling population from using plastic: Government of United Kingdom can
construct various kinds of plans and policies to ensure that their population is excepting the use
of plastic related goods and products, it will help in regulating the awareness regarding the same.
As goods and product are being produced for the people ad if they discourage or deny to
use it then sooner or later organizations also stop manufacturing it (Zuo, 2015).
Providing Education and awareness regarding the harmful effects of the plastic:
The government of the United Kingdom, can develop training and development for program for
granting and generating information and awareness regarding the harmful effects of the usage of
the plastics. Well educated and trained people will never take risk to harm their environment by
using adverse materials which can create em-balance in the economic structure of the country.

Providing Substitutes: If government will initiate the step to bring out the substitutes
for the plastic like paper bags, or cotton or any other kind of cloth which ca be used as a
substitute for the plastic than, it will automatically reduce the usage of the plastic and helps in
developing the economic growth of the country (Vieux, 2017).
CONCLUSION
From the above report it can be concluded that, as the demand of the bottled water is
increasing at a high phase in United Kingdom, it supply is also been increased at the same rate.
As the British people are very health conscious, they tend to be hydrated all the time and thus
increase the usage of bottle water in United Kingdom. This report also lay emphasis on the
measures that are taken by the government of the United Kingdom to limit the use of single use
plastic for providing stability and uniformity to the environment.
REFERENCES
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Online

Strategies to reduce plastic waste, 2018.[Online]. Available thorugh:
< https://ec.europa.eu/environment/efe/themes/waste/strategy-reduce-plastic-waste_en >