In the UK in 2015 there were two methods of charging for water supply. 1 a fixed charge giving the consumer the right to consume water at zero price per litre 2 a price per litre of water used It has been observed that the amount of water consumed is markedly lower when method 2 is used. What is implied by this observation? A Water in the UK is not a scarce good. B Water is a free good of nature and no charge should be levied. C Water is a necessity, the use of which should not be restricted by unit prices. D Water is subject to the law of diminishing marginal utility.