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Exhibit 3-16 Refer to Exhibit 3-16. Which of the Following Is False

Question 124

Multiple Choice

Exhibit 3-16 Exhibit 3-16 Refer to Exhibit 3-16. Which of the following is false ? A) Graph (1) : There is a shortage of this good when the price is equal to P<sub>3</sub>. 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.
Refer to Exhibit 3-16. Which of the following is false ?

A) Graph (1) : There is a shortage of this good when the price is equal to 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.

Correct Answer: