Table 17-8

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.

-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 400 gallons.
B) The price would be $5 per gallon and the quantity would be 500 gallons.
C) The price would be $4 per gallon and the quantity would be 600 gallons.
D) The price would be $3 per gallon and the quantity would be 700 gallons.

Correct Answer:

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