19.3.15

PRICES FUNCTION TO ALLOCATE DEMAND.

Economists will never lack for work.  Thus Alex Tabarrok at Marginal Revolution, solving California's water problems. "California has plenty of water…just not enough to satisfy every possible use of water that people can imagine when the price is close to zero." I wonder, if California water rates reflected opportunity costs, if there would be more milk production there than in Wisconsin.

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