Wednesday, May 23, 2012

Week 9 post

In the article, Community water saving project to receive cash influx amid huge demand, by
Hana Namrouqa, the author writes about the water shortage in Jordan and about how a community is saving water in every way possible. This has become very economically beneficial for the community who started this. In order to analyze why, lets have a look at everyone's favorite, supply and demand. When the quantity supplied of a good is less than the quantity demand for that good, it is called a shortage. When this happens, price for this good remains higher than the market equilibrium. When this happens, normally suppliers will produce more of the good and the market will return to equilibrium. In this instance, it is rather difficult to supply more water, so, the market for water in Jordan is a very viable market for supplies who can obtain water. Who knew water could make bank?

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