Reference no: EM131699268

For a certain small town, the tables shows the demand schedule for water. Assume the marginal cost of supplying water is constant at $4 per bottle.

Price/Quantity(bottles)

$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.

The answer key says the answer is A, and I'd like to know how to get that answer. Thank you.