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| Which of the following statement/statements are true? Statement 1: Price and quantity will change in same direction when there is a shift in supply curve and demand curve remains the same and when the number of firms is fixed. Statement 2: Increase in input prices will lead to leftward shift of supply curve. |
Both the statements are true Both the statements are false. Statement 1 is true and Statement 2 is false Statement 2 is true and Statement 1 is false
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| Statement 2 is true and Statement 1 is false |
| Increase in input prices will lead to leftward shift of supply curve. When the number of firms is fixed and when there is a shift in supply curve and demand curve remains unchanged, price and quantity will change in opposite directions. This means if price is increasing, then quantity is decreasing and vice versa. |
