Scenario 15-1
Consider the market for water in a small town in the Old West.Assume that the only source of water is the underground aquifer that lies directly below the town.Wells are used to supply water to the entire town.
-Refer to Scenario 15-1.Assume that Jack is the sole owner of all the wells in town.He decides to move to a more suitable climate and sells the wells to a couple of dozen different town residents.What will be the result
A) The town residents will likely be worse off.
B) The price of water is likely to rise.
C) The individual water sellers will not have as many customers as Jack had.
D) More water will be offered for sale.
Correct Answer:
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