-Refer to Exhibit 4-4.Which of the following statements is false? A) Graph (1): A price ceiling set at P₂ would not have an impact on the market. B) Graph (2): As supply increases,equilibrium price remains constant. C) Graph (3): As demand increases,equilibrium quantity remains constant. D) Graph (4): As supply increases,equilibrium quantity increases.

Question

Quizplus · Accepted Answer

As supply increases, equilibrium price decreases.