Table 17-8 For a Certain Small Town, the Table Shows the Demand

question 243

Multiple Choice

Table 17-8
For a certain small town, the table shows the demand schedule for water. Assume the marginal cost of supplying water is constant at $4 per bottle and there are no other costs.
-Refer to Table 17-8. If there were many suppliers of bottled water, what would be the price and quantity?

• A)The price would be $6 per gallon and the quantity would be 800 gallons.
• B)The price would be $5 per gallon and the quantity would be 1000 gallons.
• C)The price would be $4 per gallon and the quantity would be 1200 gallons.
• D)The price would be $3 per gallon and the quantity would be 1400 gallons.

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