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

question 152

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 only one supplier of water, what would be the price and quantity?

• A)The price would be $7 per gallon and the quantity would be 600 gallons.
• B)The price would be $6 per gallon and the quantity would be 800 gallons.
• C)The price would be $5 per gallon and the quantity would be 1000 gallons.
• D)The price would be $4 per gallon and the quantity would be 1200 gallons.

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Odds

The ratio of the probability of an event happening to the probability of it not happening; in gambling, it represents the amount won relative to the stake.

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The quantification of the chance of an event happening, represented as a number from 0 to 1, with 0 meaning the event is impossible and 1 meaning the event is certain.

P-Value

The probability of observing data at least as extreme as the ones observed, under the assumption that the null hypothesis is true.