If government undertakes to reduce water usage by using a market incentive plan:
A) each consumer will have to reduce his or her water usage by an equal amount.
B) consumers who reduce water usage by more than the required amount can sell marketable certificates to consumers who seek to reduce usage by less than the required amount.
C) consumers who do not reduce usage by the required amount will have to pay taxes on the extra water usage.
D) consumers will be asked to reduce water usage voluntarily.

Question

Quizplus · Accepted Answer

A market incentive plan typically involves creating a system where consumers can trade rights or certificates, allowing those who reduce usage more than required to sell their excess reduction to others who need it.

If Government Undertakes to Reduce Water Usage by Using a Market