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(Figure 1)
Economists believe that water meters would help solve the problem of water shortages. They provide evidence that with meters in place, the quantity of water demanded would decrease. A study performed in Boulder Colorado compared water usage with a flat rate system (figure 2) which charges consumers a flat rate for water no matter how much is consumed versus a water metered system (figure 3) which charges consumers additional money for using more than a minimum quantity. This means that there is a price tag placed on the marginal unit of water used for every acre-foot of water consumed over the minimum level...
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