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 low marginal value.
B)takes priority over all other goods.
C)takes place at a relatively high marginal value.
D)should be regulated by the government.
E)should be unlimited at a price of $0.

Question

Quizplus · Accepted Answer

Since there is a plentiful supply of water in Canada, the marginal value of water consumption is relatively low. This means that the cost of producing an additional unit of water is not high, so the price that consumers pay for water is relatively low. Therefore, the consumption of water in Canada takes place at a relatively low marginal value.

Since There Is a Relatively Plentiful Supply of Water in Canada