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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Definitions:

Investment

Refers to the purchase of goods that are not consumed today but are used in the future to create wealth, such as purchasing machinery for a factory.

Net Capital Outflow

The difference between domestic residents’ investments abroad and foreigners’ investments in the domestic economy.

Net Exports

The value of a country's exports minus the value of its imports, reflecting the balance of trade between a country and its trading partners.

Turkish Currency

The currency of Turkey, known as the Turkish Lira, is the unit of currency used in Turkey.