Which rate structure charges lower rates as usage increases?

• A. Decreasing Block Rate
• B. Uniform Rate
• C. Increasing Block Rate
• D. Seasonal Rate

Answer: (A)

This is about how the price per unit changes as you use more water. In a decreasing block rate, the price per unit gets cheaper as you move into higher usage blocks, so the later blocks have lower rates than the earlier ones. That means as your consumption climbs, each additional unit can cost less than the previous one, even though the total bill can still rise. This differs from a uniform rate (same per unit regardless of use), an increasing block rate (price per unit goes up with more use), and a seasonal rate (price varies by season, not by total usage). So the option describing decreasing block rate best matches the idea of lower rates as usage increases.