If a monopoly firm reduced the price of its product, which of following must have been true?

Consider the expressions T - G and Y - T - C. Which of the following statements is correct?

a. Each one of these is equal to national saving. b. Each one of these is equal to public saving. c. The first of these is private saving; the second one is public saving. d. The first of these is public saving; the second one is private saving.

When supply increases and the supply curve shifts to the right, equilibrium price and equilibrium quantity will both increase.

Answer the following statement true (T) or false (F)