Question
CONSUMER/PRODUCER SURPLUS You wake up and realize that an apocalypse has wiped out most of civilized society. After walking for a good amount of time,
CONSUMER/PRODUCER SURPLUS
You wake up and realize that an apocalypse has wiped out most of civilized society. After walking for a good amount of time, you stumble upon a small group of people. You immediately notice that there is a shortage of water. The people hail you as their leader, because...you took this economics course. The first thing you have to doas their leader is solve the water shortage issue. Specifically, You want to create the most utility for your people - you want the most people to get water. Right now only the wealthy can afford water in your society, since water is scarce and prices reflect this. What measure(s) can you implement as the new government of this society to insure we're maximizing welfare (utility) in this society, with regards to water?
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