Answer to Question #82338 in Microeconomics for Elijah Odame

Question #82338
By the use of the concept of consumer surplus and marginal utility, explain how you will solve the water problem in your community if water is not metered.
1
Expert's answer
2018-10-24T10:45:09-0400

Consumer surplus is based on the theory of marginal utility that benefits a consumer as a result of more unit of goods or services. The utility the goods or services provide vary from individuals to individual due to their preferences. Thus, in a scenario where water is not metered, consumers are likely to spend less due to the diminishing marginal utility they receive.

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