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3. China has been experiencing periodic water shortages (see article below). Economic analysis suggests that the policy of raising the price of water in certain cities would have which of the following effects: A. Decrease the demand for water B. Decrease the quantity demanded of water C. Increase the incentive to transport water to the cities that are raising their price a. A only b. B only C. A and C d. B and C BEIJING - Cities across China are raising the price of water in moves that try to balance the need to conserve an increasingly scarce resource with the effects on a public used to low fees. The city government of Luoyang, in central Henan province, prepared to hold a public meeting Friday to argue for a proposed water price increase of 40% to 48%. Water prices in the dry region haven't risen since 2003, which the government says is exhausting meager supplies and keeping the local water utility in the red. At least half a dozen other major cities have raised water prices in the past few months. The changes reflect a growing official consensus that low prices are part of China's water shortage, since they give companies and households little incentive to use water carefully. The government is also spending billions of dollars on a controversial system of canals to divert water from the flood- prone south to the dry north