When market trades in water occur, we can assume that
A) the party releasing water is the loser.
B) the party buying water is paying too much.
C) the trade in something as important as water is immoral.
D) the signals and incentives flowing from the trades help many in that water market, not just the buyer and seller directly.

Question

Quizplus · Accepted Answer

Market trades in water create signals and incentives that can lead to more efficient allocation and use of water resources, benefiting the broader market beyond just the immediate parties involved in the transaction.

When Market Trades in Water Occur, We Can Assume That