Question

Read the following statements carefully and choose the correct alternative:

Statement (1): Increase in supply results from a fall in the price, other things being equal.

Statement (2): Contraction in supply results from a rise in price, other things being equal.

Options

• Statement 1 is true and statement 2 is false.

• Statement 2 is true and statement 1 is false.

• Both the statements are true.

• Both the statements are false.

Answer 1

Statement 2 is true and statement 1 is false.