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

Exhibit 4-1 Supply and demand data

Price

Quantity

demanded

Quantity

supplied

$1.00

500

1.50

450

150

2.00

400

250

2.50

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 doesnotchange, the new equilibrium price will be:

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