Friday, March 07, 2014
Why are Water Prices So Low in Drought Areas?
Read this article about the water intensity of different foods (i.e how many gallons of water it takes to create a pound of meat) and note that water prices are never mentioned. While millions of people have studied Econ 101, the basic ideas of supply and demand do not sink in. Why is that? Why have economists failed to convey our most important ideas? When are efficient public policies adopted?