Economics of Public Issues (20th Edition) (The Pearson Series in Economics)
Economics of Public Issues (20th Edition) (The Pearson Series in Economics)
20th Edition
ISBN: 9780134531984
Author: Roger LeRoy Miller, Daniel K. Benjamin, Douglass C. North
Publisher: PEARSON
Question
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Chapter 9, Problem 1DQ
To determine

To compare:

The quantity of water required by people in general with the quantity of water required by people when bill has to be paid for the quantity consumed.

Expert Solution & Answer
Check Mark

Explanation of Solution

  • It is nearly impossible to determine how much water people actually need, because the requirement of water changes according to location, environment, and the circumstances of that particular region.
  • The decision regarding the need of water involves value judgments and would differ from person to person. People with smaller families will require less amount of water, whereas people belonging to large families will require more amount of water for consumption.
  • If one individual has to pay water bills for everyone, then he would want to reduce water consumption of the people.
Economics Concept Introduction

Concept introduction:

Demand:

The willingness of a consumer to buy a commodity or a service depending upon his purchasing power is known as demand.

Supply:

A particular amount of product available in the market at a particular price is known as supply.

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Chapter 9 Solutions

Economics of Public Issues (20th Edition) (The Pearson Series in Economics)

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