-Refer to Exhibit 4-4

Multiple Choice

-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.