Which of the following statements is TRUE?
I. An increase in supply causes a temporary surplus at the old equiLiBrium price.
II. An increase in supply lowers the equiLiBrium price and increases the equiLiBrium quantity.
III. A technological innovation that reduces the costs of production causes an increase in supply.
1) Only statement I is true
2) Only statement II is true
3) Only statement III is true
4) Statements II and III are true
5) All statements are true