Table 16-7
Suppose the countries of Xania and Pluntia share the world supply of water. Suppose that the marginal cost of bottling water is a constant $4 per gallon, and the demand for water is described by the following schedule:

-Refer to Table 16-7.If there were many suppliers of bottled water,what would be the price and quantity?
A)$6, 400
B)$5, 500
C)$4, 600
D)$3, 700

Question

Table 16-7
Suppose the countries of Xania and Pluntia share the world supply of water. Suppose that the marginal cost of bottling water is a constant $4 per gallon, and the demand for water is described by the following schedule:
 
-Refer to Table 16-7.If there were many suppliers of bottled water,what would be the price and quantity?
A)$6, 400 
B)$5, 500 
C)$4, 600 
D)$3, 700

Quizplus · Accepted Answer

In a competitive market with many suppliers, the price and quantity would be determined by the intersection of supply and demand, which is typically at the equilibrium point. Here, the equilibrium price is $4 and the quantity is 600.

Table 16-7 Suppose the Countries of Xania and Pluntia Share the World