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Scenario: More than half of all residential water connections in Britain are not metered. Residential customers pay a flat fee regardless of usage. Scottish Water, which supplies water in Scotland, says there is no evidence that the installation of meters encourages lower than normal usage of water.

Answer these questions:

1.The Salmond family lives in a home that is not metered. The family consumes around 10,000 gallons a month. What is the family’s monthly demand curve for water, assuming that the demand curve is a straight line, and (the price is of water is £50 per 1,000 gallons) the Salmond family consumes nothing.
2.Calculate the total benefit and marginal benefit from water when the Salmond family consumes 10,000 gallons a month. What is the family’s buyer surplus?
3.Suppose that Scottish Water installs a water meter at the Salmond’s home and charges a price of £5 per 1,000 gallons. How much water would the family buy, and how much would it spend each month?
4.What is the maximum amount Scottish Water could charge the Salmond family for the consumption in question 3?

Sample Solution

be too intimidating, aggressive or bossy. Most female CEOs are not liked by companies and thus they are always in jeopardy of losing their jobs as CEOs or in high ranked leadership positions.
Headley is a reporter who uses current studies to talk about the prevalent issues in the gender gap that female CEOs face as compared to male CEOs. Headley has written multiple articles which have been reviewed about gender and wage gap. This source is credible because it directly links in studies used to justify major points. Headley uses new studies to discuss and mention why female CEOs are at risk more than men and how that plays a role in why there are more male CEOs than female CEOs and females in leadership positions. The views in this article correlate with the views in Ahrens article and Mohans article because they both also describe that one of the reasons that women are not as successful in attaining CEO leadership positions is due to the fact that they are more likely to face termination, especially if they are newer to the positions.
Landmann, Andreas. “Gender Preferences in the CEO Successions of Family Firms: Family Characteristics and Human Capital of the Successor.” NeuroImage, Academic Press, 28 Apr. 2015.
Landmann explains that in American Family Businesses, female leadership levels are still slow and a minority, but their representation as CEOs in family businesses has increased over the years. The journal describes that in 2010 the American Family Businesses Survey highlighted that female leadership is slowly becoming prevalent in family firms. The survey also stated that 24 percent of family businesses had reported that they had female CEOs and presidents and 31 percent said that they might have a female successor but, considering the number of males as CEOs in family businesses women would continue to represent a minority. Landmann describes that recent writings on parental gender preferences states that the fathers still favor their sons over their daughters, and thus daughters are not given such high, or any leadership positions in comparison to their brothers. The journal shows that gender preferences in family b

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