According to the Water Resources Minister, the territory has to 'confront the urgent need to make tough choices' over managing its dwindling clean water reserves. Municipal freshwater demand is rising by roughly 4% per year, creating a projected need to double water supply capacity by 2032. However, building new dams is ecologically damaging and highly unpopular, while the widespread adoption of industrial water reclamation schemes has been severely hindered by a lack of demand for recycled greywater.
It can be inferred from the data that
the opportunity cost of building new dams is always water reclamation.
greater reclamation of industrial wastewater would reduce the annual rate of growth of municipal water demand.
the private cost of freshwater extraction is greater than its social cost.
the price of recycled greywater is low.
256 exam-style questions on AQA A Level Economics 1.3 Price determination in a competitive market, covering 1.3.1 The determinants of the demand for goods and services, 1.3.2 Price, income and cross elasticities of demand, 1.3.3 The determinants of the supply of goods and services, 1.3.4 Price elasticity of supply, 1.3.5 The determination of equilibrium market prices, and 1.3.6 The interrelationship between markets. Each one has a worked solution and a mark scheme showing where the marks go.