During the draughts that periodically plague California, farmers in that state are able to purchase subsidized water to irrigate their crops, while at the same time many California home owners have to pay large fines it they water their lawns. The water farmers have at a subsidized price may not be sold to desperate home owners by law. How would a price system for water work to alleviate the suffering of home owners, save taxpayers money, and avoid draughts?
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