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

Multiple Choice

Exhibit 4-4
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.