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Exercise 3
Due to a drought in California, farmers face rising costs for water.
Exercise 3
Due to a drought in California, farmers face rising costs for water. Almond farming is a water-intensive
process.
Explain (using the 3-steps process) and show graphically how will the drought affect the market for
almonds.
(25 marks)
Exercise 4
Explain and discuss using examples the Cost-Benefit Principle and its way of use.
(25 marks)
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