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2. Ann Arbor gets electricity from Detroit Edison, which is one of a small number of utilities that uses a multi-part schedule that is inclining

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2. Ann Arbor gets electricity from Detroit Edison, which is one of a small number of utilities that uses a multi-part schedule that is inclining rather than declining. This schedule is the result of pressure from environmental groups that call declining rates "promotional pricing" and favor an inclining rate to promote conservation, and additional pressure from advocates for the poor, who believe that this type of rate is more "fair.\" A residential customer in Ann Arbor faces the following rate schedule: First 500 KWI-I $.07 per KWH Next 300 KWH $.10 per KWI-I All additional KWH $.13 per KWH How would this customer's consumption, electric bill, and average rate in Ann Arbor compare to other cities? Is she better off or worse off than in other cities

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