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 only one supplier of water,what would be the price and quantity?
A)$7, 300
B)$6, 400
C)$5, 500
D)$4, 600

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 only one supplier of water,what would be the price and quantity?
A)$7, 300 
B)$6, 400 
C)$5, 500 
D)$4, 600

Quizplus · Accepted Answer

If there were only one supplier of water, the price and quantity would be at the point where the supply curve intersects the demand curve. This is the point where the quantity supplied equals the quantity demanded. In Table 16-7, this point is at a price of $7 and a quantity of 300.

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