Exhibit 4-1 Supply and demand data

Price

Quantity
demanded

Quantity
supplied

$1.00

500

50

1.50

450

150

2.00

400

250

2.50

300

300

3.00

150

350

In Exhibit 4-1, suppose that a reduction in the price of an important input used to produce the good causes an increase in quantity supplied of 150 units at every price level. Assuming that demand does not change, the new equilibrium price will be:

Question

Exhibit 4-1 Supply and demand data

Price	Quantity demanded	Quantity supplied
$1.00	500	50
1.50	450	150
2.00	400	250
2.50	300	300
3.00	150	350

In Exhibit 4-1, suppose that a reduction in the price of an important input used to produce the good causes an increase in quantity supplied of 150 units at every price level. Assuming that demand does not change, the new equilibrium price will be:

Quizplus · Accepted Answer

The Answer is C

Exhibit 4-1 Supply and Demand Data