hard · Gre Verbal

In the coastal town of Marisle, the municipal water authority replaced every household's old fixed-rate water plan with a metered plan that charges strictly by volume consumed. Officials predicted this would sharply reduce total residential water use, since residents would now pay more for using more. Yet in the year after the switch, total residential water consumption in Marisle rose by 9%.

Which of the following, if true, most helps to resolve the apparent paradox described above?

  1. In the year of the switch, an unusually large number of new families moved into Marisle, substantially increasing the town's residential population.
  2. Under the old fixed-rate plan, residents had frequently complained to officials that their monthly bills were higher than they felt was fair.
  3. The metered plan required the installation of a new digital water meter in each individual home, a process that took several full weeks to finish.
  4. A neighboring town that had kept its old fixed-rate plan saw its total residential water consumption decline slightly over the same twelve-month period.
  5. The water authority ultimately spent considerably more each year administering and maintaining the new metered plan than it had on the old fixed-rate plan.

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