Exhibit 4-1 Supply and demand data $$\begin{array} { | c | c | c | }
\hline \text { Price } & \begin{array} { c }
\text { Quantity } \
\text { demanded }
\end{array} & \begin{array} { c }
\text { Quantity } \
\text { supplied }
\end{array} \
\hline \$ 1.00 & 500 & 50 \
1.50 & 450 & 150 \
2.00 & 400 & 250 \
2.50 & 300 & 300 \
3.00 & 150 & 350 \
\hline
\end{array}$$ 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:
A) $1.00.
B) $1.50.
C) $2.00.
D) $2.50.

Question

Exhibit 4-1 Supply and demand data $$\begin{array} { | c | c | c | } 
\hline \text { Price } & \begin{array} { c } 
\text { Quantity } \
\text { demanded }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { supplied }
\end{array} \
\hline \$ 1.00 & 500 & 50 \
1.50 & 450 & 150 \
2.00 & 400 & 250 \
2.50 & 300 & 300 \
3.00 & 150 & 350 \
\hline
\end{array}$$ 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:
A) $1.00.
B) $1.50.
C) $2.00.
D) $2.50.

Quizplus · Accepted Answer

The Answer is C

Exhibit 4-1 Supply and Demand Data In Exhibit 4-1, Suppose That a Reduction in the Price