Exhibit 4-4 -Refer to Exhibit 4-4.Which of the Following Is False

Exhibit 4-4

-Refer to Exhibit 4-4.Which of the following is false?

A) Graph (1) : There is a shortage when price is P₃.
B) Graph (2) : As supply increases, equilibrium quantity remains constant.
C) Graph (3) : As demand increases, equilibrium price remains constant.
D) Graph (4) : As supply changes, equilibrium price stays the same.