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.