Problem
1. Assume that both the supply of bottled water and the demand for bottled water rise during the summer but that supply increases more rapidly than demand. What can you conclude about the directions of the impacts on equilibrium price and equilibrium quantity?
2. Why are shortages or surpluses more likely with preset prices, such as those on tickets, than fl exible prices, such as those on gasoline?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.