At the base of a mountain peak a hundred hikers a gathered to ascend to a plateau landing. The average time to reach the top is three hours. At the landing, there is a limited supply of water provided by a mountain stream of 25 pints to the hikers. You must decide on how to distribute/allocate the supply of water to the arriving hikers. You have the following choices on the best economic methods to distribute/allocate the water supply:
A) Allocate/distribute the water on a First Come First Served basis. The first 25 hikers are rewarded with a drink of water.
B) Allow the government authority to make the decision on who should and should not receive water.
C) Hold a lottery and randomly allocate/distribute water to the hikers.
D) Sell the limited supply of water to hikers.
*** Explain what’s the best option in economic perspective. (one paragraph) And analyze a little bit on others choices. (one paragraph)
