Since there is a relatively plentiful supply of water in Canada (this is not true in many parts of the world), the consumption of water in Canada
A) takes place at a relatively high marginal value.
B) takes place at a relatively low marginal value.
C) should be regulated by the government.
D) takes priority over all other goods.
E) should be unlimited at a price of $0.

Question

Quizplus · Accepted Answer

Since there is a relatively plentiful supply of water in Canada, its marginal value is relatively low, meaning that it is not as scarce as in many other parts of the world. Therefore, the consumption of water in Canada takes place at a relatively low marginal value. However, this does not mean that water should be unlimited at a price of $0 or that it should not be regulated by the government, as there may still be concerns about efficient allocation, environmental impact, or affordability for certain populations.

Since There Is a Relatively Plentiful Supply of Water in Canada