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  1. Home
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Miscellaneous·2014·Easy

Which of the following statements is/are true ? 1. If increase in demand and supply are of equal magnitude, the price will remain unchanged, but the equilibrium quantity will increase. 2. If increase in demand is of greater magnitude than increase in supply, both equilibrium price and equilibrium quantity will increase. 3. If increase in supply is of greater magnitude than increase in demand, equilibrium price will fall but equilibrium quantity will increase. Select the correct answer using the code given below :

Which of the following statements is/are true ?

1. If increase in demand and supply are of equal magnitude, the price will remain unchanged, but the equilibrium quantity will increase.

2. If increase in demand is of greater magnitude than increase in supply, both equilibrium price and equilibrium quantity will increase.

3. If increase in supply is of greater magnitude than increase in demand, equilibrium price will fall but equilibrium quantity will increase.
Select the correct answer using the code given below :

Options

  1. a.

    1 only

  2. b.

    2 only

  3. c.

    1 and 2 only

  4. d.

    1, 2 and 3

    Correct answer

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