Consider the market for bottled water. Illustrate and discuss the impact of the following changes on the market (demand and/or supply). Be sure to discuss the impact on equilibrium price and quantity.
a. A technological breakthrough in the water bottling industry occurs.
b. Consumers expect the price of bottled water to increase in the near future. They believe that it will be a permanent price increase.
c. The average income of the bottled water customers increases.
d. The government imposes a tax on the producers of bottled water.