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

Multiple Choice

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

A) Graph (1) : There would be a shortage of the good if a price floor is set at 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.