Related to the Apply the Concept on page 81] An article
on marketwatch.com stated, “While the fizzy soda drinks
companies have experienced an annual volume sales
decline since 2003, bottled water grew every year over the
last two decades, except 2009 during the depths of the
Great Recession.”
a. What factors have caused a decline in sales of carbonated (“fizzy”) beverages? Is it likely that those factors
will lead to further declines in demand in the future?
Briefly explain.
b. Why might sales of bottled water be likely to decline
during a recession, when employment and household incomes fall? Would sales of premium bottled
water be likely to decline by more or by less during a
recession than sales of regular bottled water? Briefly
explain.