equilibrium price P2, at which the quantity demanded equaled the new, higher quantity supplied. Practice Multiple choice questions 1. Suppose when the price of shirts increases from $20 to $25, the quantity supplied increases. This change is best described as ... a. movement along a supply curve. b. a change in supply. c. movement along a demand curve. d. a change in demand. . e. none of the above. 2 . Which one of the following statements is false? a. Demand curves tend to slope downward. b. The relationship between price and quantity demanded is generally positive. c. The relationship between price and quantity supplied is generally direct. d. At equilibrium, the quantity demanded equals the quantity supplied. e. A shortage occurs when the quantity demanded exceeds the quantity supplied