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After reading the paragraph below, answer the questions that follow.
Americans spend up to $100 billion annually for bottled water (41 billion gallons) . The only beverages with higher sales are carbonated soft drinks. Recent news stories have highlighted the fact that most bottled water comes from municipal water supplies (the same source as your tap water) , although it may undergo an extra purification step called reverse osmosis.
Imagine two tanks that are separated by a membrane that's permeable to water, but not to the dissolved minerals present in the water. Tank A contains tap water and tank B contains the purified water. Under normal conditions, the purified water would cross the membrane to dilute the more concentrated tap water solution. In the reverse osmosis process, pressure is applied to the tap water tank to force the water molecules across the membrane into the pure water tank.
-After the reverse osmosis system has been operating for 30 minutes, the solution in tank A would
Supply Curve
A graphical representation showing the relationship between the price of a good or service and the quantity of it that producers are willing and able to sell.
Equilibrium Quantity
The quantity of goods or services at which quantity demanded equals quantity supplied, leading to market equilibrium.
Perfectly Inelastic
A situation in demand where the quantity demanded does not change regardless of any change in price. This means the demand curve is a vertical line, indicating total unresponsiveness to price changes.
Excise Tax
A tax levied on specific goods or services, such as tobacco or gasoline, often imposed to discourage consumption or generate revenue.
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