Why you think hotelling principle applies to canadas water, Microeconomics

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Why you think hotelling principle applies to canadas water

Problem

Water is a natural resource that is plentiful in Canada but not plentiful in Arizona.

a. If Canadians start to export bulk water to Arizona, what do you predict will be the effect on the price of bulk water?

b. Will Canada eventually run out of water?

c. Do you think the Hotelling Principle applies to Canada's water? Explain why or why not.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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