Question 20 Water shortages caused by droughts can be economically lessened by: Not yet answered O a. restricting water usage of consumers Marked out of O b. allowing price to equate the demand for water with the supply of water 1.00 O c. imposing tight price controls on water Flag question O d. arresting anyone who wastes water Question 21 Suppose fish stocks in a lake are being overfished by fishers. To reduce the Not yet overfishing problem efficiently the government could: answered Marked out of O a. increase the length of the fishing season 1.00 O b. establish a tradeable, property right entitlement to the fish Flag question O c. educate the fisherman not to overfish O d. pay to have more fish transported to the lake Question 22 Suppose the price elasticity of demand for wine is 1.60. A 12 per cent decrease in Not yet price will result in: answered Marked out of O a. a 7.5 per cent increase in the quantity of wine demanded 1.00 O b. a 7.5 per cent decrease in the quantity of wine demanded Flag question O c. a 19.2 per cent increase in the quantity of wine demanded O d. a 19.2 per cent decrease in the quantity of wine demanded