Suppose that we illustrate demand and supply with quantity on the horizontal axis and price on the vertical axis. When a shift in demand or supply occurs, a comparative statics analysis compares the old and the new equilibrium points.

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This is correct as a comparative statics analysis involves analyzing the changes in the equilibrium point (quantity and price) after a shift in demand or supply. By comparing the old and new equilibrium points, we can see the effects of the change in the market. This statement is true. A comparative statics analysis compares the old and new equilibrium points after a shift in demand or supply. Quantity is typically on the horizontal axis, and price is on the vertical axis in typical demand and supply diagrams.

Suppose That We Illustrate Demand and Supply with Quantity on the Horizontal