The Consumption of Bottled Water Increased Dramatically During the 1990s

question 115

Multiple Choice

The consumption of bottled water increased dramatically during the 1990s.If consumers' utility schedules for water remained constant over this time period,in order for consumers to stay in equilibrium,the price of bottled water must have

• A) risen because marginal utility increased since people consumed more bottled water.
• B) fallen.
• C) remained constant because the marginal utility schedule did not change.
• D) risen because the supply of water must have increased.
• E) We don't have enough information to say what happened to the price.