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.

Question

Quizplus · Accepted Answer

In Graph (3), as demand increases, the equilibrium price should increase, not remain constant.

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