select the correct answer. a severe water shortage recently hit country x. the government wants to ensure…

select the correct answer. a severe water shortage recently hit country x. the government wants to ensure that drinking water remains affordable to the public. what policy or steps should the government undertake? a. decrease spending on water reforms. b. introduce a price floor on drinking water. c. increase taxes for working individuals. d. introduce a price ceiling on drinking water. e. increase taxes for producers of drinking water.

select the correct answer. a severe water shortage recently hit country x. the government wants to ensure that drinking water remains affordable to the public. what policy or steps should the government undertake? a. decrease spending on water reforms. b. introduce a price floor on drinking water. c. increase taxes for working individuals. d. introduce a price ceiling on drinking water. e. increase taxes for producers of drinking water.

Answer

Brief Explanations:

A price - ceiling is a legal maximum price. To ensure drinking water remains affordable during a shortage, the government can introduce a price ceiling. Decreasing water reform spending may worsen the situation. A price floor would set a minimum price, making water more expensive. Increasing taxes on workers or water producers won't directly make water more affordable.

Answer:

D. Introduce a price ceiling on drinking water.