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The community of Akvo is a small city in a middle-income Asian nation. The city currently provides water to its citizens through a utility run

The community of Akvo is a small city in a middle-income Asian nation. The city currently provides water to its citizens through a utility run by the local community. This water system serves 15,000 households. Of these, 5,000 are considered high income households and 10,000 are low income households. In addition to these 15,000 households, an additional 2,500 poor families live in neighborhoods on the edge of town that have yet to be connected to the municipal water system, and thus do not have access to water in their homes. Currently, the price of water provided through the utility is subsidized, so that households pay just $0.3 per cubic meter (m3 ). Because of concerns over the high cost of this subsidy, you have been asked to evaluate alternative pricing schemes for Akvo. For both the current pricing scheme of $0.3/m3 and each of the alternatives requested below, please provide the following information:

For both the current pricing scheme of $0.3/m3 and each of the alternatives requested below, please provide the following information.

The price (or prices) necessary to meet the goal of the alternative.

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