Water supply and demand

Video 66 of 245 from the course: Development Economics
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Why prices for water are important, and what can happen when those prices are interfered with.

 

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Yes, FC and VC matter. Most people miss that, but the "problem" results from FC NOT matching FR (monthly charge) at utilities. That's why you get the problem you noted. Here's my soln: http://www.aguanomics.com/2011/09/time-to-dump-increasing-block-rates.html

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