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.