question archive For a certain small town, the table shows the demand schedule for water
For a certain small town, the table shows the demand schedule for water
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For a certain small town, the table shows the demand schedule for water. Assume the marginal cost of supplying water is constant at $4 per gallon.
| Price ($) | Quantity (gallons) |
|---|---|
| $9 | 200 |
| $8 | 400 |
| $7 | 600 |
| $6 | 800 |
| $5 | 1000 |
| $4 | 1200 |
| $3 | 1400 |
| $2 | 1600 |
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.
