Answer to Question #229326 in Macroeconomics for Annie

Question

Your local community is experiencing high prices for water usage.

Identify one supply or demand shifting factor that the community could have some control over or do something about.
Which curve would this shift and in which direction?
Explain how this can achieve the goal of decreasing the price of the water.

Answer 1

Size of the population is the shifting factor

The demand curve will shift to the right

It may through reusing water to plower the use of water which will eventually decrease the demand for water thus lowering the prices for water