Narrbegin Exhibit 4 -In Exhibit 4

Narrbegin Exhibit 4.1 Supply and demand data
$$\begin{array} { | c | c | c | } \hline \text { Price (\$) } & \begin{array} { c } \text { Quantity } \\\text { demanded }\end{array} & \begin{array} { c } \text { Quantity } \\\text { supplied }\end{array} \\\hline 10 & 500 & 50 \\\hline 15 & 450 & 150 \\\hline 20 & 400 & 250 \\\hline 25 & 300 & 300 \\\hline 30 & 150 & 350 \\\hline\end{array}$$
-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 300 units at every price level. Assuming that demand does not change, the new equilibrium price will be:

A) $10.
B) $15.
C) $20.
D) $25.

Correct Answer:

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