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1. Estimate the social surplus gain obtained when moving from a at monthly water fee of ($250) per household and an average monthly consumption

1. Estimate the social surplus gain obtained when moving from a at monthly water fee of \ ($250\) per household and an average monthly consumption of \($100\text{ m}^3\), to a consumption-based price of \($1.9/\text{ m}^3\), given the following slope estimate from existing studies of comparable municipalities: for every \($1\) increase in the price of water, consumption dropped by \(40\text{ m}^3\).

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