Question
The City of Houston provides water throughout the city, and the City charges people each month based on usage. Now, the City is worried people
The City of Houston provides water throughout the city, and the City charges people each month based on usage. Now, the City is worried people are "overusingwater, thus they are requiring that usage be reduced by 20%. If usage is greater than 80% of the usage last year for the same month (that is, March 2021 compared to March 2020), the price for the "marginal" water will be 50% higher. The City is promoting the new restrictions on water usage by saying residents will save 20% off their water bill. Will utility rise under this scheme (required reduction in quantity, and therefore expenditure ) rise? Why or why not?
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