When Water Cannot Be Traded Among Current and Potential Users

question 92

Multiple Choice

When water cannot be traded among current and potential users, then

• A) each user will take more care to conserve, because added water cannot be obtained.
• B) users have a strong incentive to conserve because they are now protected from price increases imposed by greedy entrepreneurs.
• C) efficiency improves, as dry years can be better anticipated and planned for, and every user knows the quantity that will be available.
• D) water will not flow to its highest valued uses, and some users will use water for relatively low-valued uses, because they cannot gain by selling it to others.

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Definitions:

Preselling

The strategy of engaging potential customers or creating demand for a product or service before it is available.

Testing Technique

Methods or strategies used to evaluate the functionality, performance, or reliability of a system, component, or product.

Developed

Refers to a state or condition where something has been advanced, refined, or enhanced, often through deliberate efforts or processes.

Insufficient Data

A situation where the amount of data available is not enough to make a reliable analysis, decision, or conclusion.