-Refer to Exhibit 4-4

Multiple Choice

-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.