STUDENTS WILL

  • Evaluate different allocation methods for water.
  • Determine the costs and benefits of each method.

INTRODUCTION

Pop quiz, econ hot shot:

If you want to reduce the quantity demanded for a good, what do you do?

A. Raise the price of the good
B. Lower the price of the good
C. Get a skunk to spray the good 
D. Answer not given

[Maybe A, Probably D. By this point, most economics students should be scratching their heads. The law of demand tells us that if the price of a good rises, the quantity demanded decreases. So, why is the better answer D?]

 

For the complete lesson, go to Tapped Dry: How Do You Solve a Water Shortage? on EconEdLink.

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