ECON 201 Week 2 Discussion

ECON 201 Week 2 Discussion | American Public University System.

Laura Carter posted Apr 15, 2021 2:07 PM

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My examination this week is in the supply and demand of potable tap water. The supply of tap water is often times impacted when an area suffers a natural disaster. When a natural disaster strikes, there is commonly a loss of electricity. This electricity loss then affects pump stations that pump potable water to homes and businesses. The water treatment facilities are also impeded because the water treatment process requires electricity to operate. Without potable water being produced and pumping stations operable to pump potable water, the alternative for people is to purchase bottled water until electricity is resumed and potable water is delivered to taps once more. In this way, bottled water is a substitution. Other ways in which supply is negatively impacted is when the treatment facilities themselves are damaged or destroyed and water source contamination.

A few different variables that affect the demand curve of potable tap water is the price, use of energy-efficient appliances, outdoor activities such as swimming pools and outdoor watering. Demand for tap water increases greatly during summer months due to all of these, but especially outdoor watering. Commercial and residential properties have weekly, if not daily watering rituals through the summer that greatly increase the demand on the water supply. Some people water manually with a water hose, but a multitude have sprinkling systems that run on a timer and use several hundred, if not thousands, of gallons of water at a time. In summary, the variable of summer weather has an impact on demand for potable tap water. Outdoor watering is a large component of that variable.

A product I use every day is Coffee mate coffee creamer. The supply of this creamer can be impacted if there is a disruption in the supply chain of this product. For instance, if one of the trucking companies, that is responsible for delivering this product from the factory to stores, went on strike and was not delivering the creamer. A supply curve shift would then occur to the left, since supply would be reduced if the company could not supply as much coffee creamer. On the other hand, if another company produced coffee creamer that was equal or superior in taste and price, the demand for Coffee mate coffee creamer could possibly decrease. This would be a substitute product. The outcome would be a demand reduction for Coffee mate coffee creamer.

Hope everyone is having a fantastic week!