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 doesnotchange, the new equilibrium price will be: