7. The municipal water works of Cortland draws water from two sources: an underground spring and a...

Question:

7. The municipal water works of Cortland draws water from two sources: an underground spring and a nearby lake. Water from the spring costs 2 cents per 100 gallons to deliver and the spring has a capacity of 1 million gallons per day. Water from the lake costs 4 cents per 100 gallons to deliver and is available in unlimited quantities. The demand for water in the summer months in Cortland is P 20 0.001Q, where P is the price of water in cents per 100 gallons and Q is quantity demanded in hundreds of gallons per day. The demand curve for water in the winter months is P 10 0.001Q. If the water works wants to encourage efficient water use, how much should it charge for water in the summer months? In the winter months? LO3

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: