ECON 1100 Quiz: Water Scarcity in California
27 Oct 2015
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Since the year 2012, the state of california has been experiencing an ongoing, record- breaking drought, which has resulted in a water supply shortages throughout the state. Since water is a common good and a necessity to life, this has impacted the entire population of the state. The governor of the state of california, jerry brown, has advised that california communities cut back on their water usage by 8% to 36% in order to conserve as much water as possible to avoid a shortage. Since the amount of water readily available is limited, in response the price of water has increased. Therefore, since water has become more scarce in california, the price of water has increased, and in turn the demand for water has decreased. Since residents are conserving more water as a response to the increased price, there is a decrease in the demand for water throughout the state.
