To find the average price per square yard of the carpet, you can divide the total sales amount by the total number of square yards sold.
The total sales amount is $1,600, and the total square yards sold is 800.
Average price per square yard = Total sales / Total square yards Average price per square yard = $1,600 / 800 = $2
Thus, the average price per square yard is $2.
So the correct answer is B. $2.