Which of the, following statements is/are correct?
1. If the increase in demand and supply are of equal magnitude, the price will remain unchanged, but the equilibrium quantity will increase.
2. If the increase in demand is of greater magnitude than an increase in supply, both the equilibrium price and the equilibrium quantity will increase.
3. If the increase in supply is of greater magnitude than an increase in demand, equilibrium price will fall but equilibrium quantity will increase.
Select the correct answer using the code given below:
1
1 only
2
1 and 2 only
3
2 and 3 only
4
1, 2 and 3