Refer to the Information Provided in Figure 4

question 55

Multiple Choice

Refer to the information provided in Figure 4.3 below to answer the question(s) that follow. Figure 4.3
-Refer to Figure 4.3. If the government will not allow retailers to charge more than $0.40 for a pencil, which of the following will happen?

• A) Demand must eventually decrease so that the market will come into equilibrium at a price of $0.40.
• B) Supply must eventually increase so that the market will come into equilibrium at a price of $0.40.
• C) A nonprice rationing system such as queuing must be used to ration the available supply of pencils.
• D) The market will be in equilibrium at a price of $0.40.

---

Definitions:

Buoyancy and Insulation

Refers to the ability of an object to float in fluid due to its density being less than the fluid's, and the capacity to reduce heat transfer, respectively.

Oil Coating

A process of applying a layer of oil on surfaces to provide lubrication, protection from corrosion, or aesthetic enhancement.

Oil Pollution

The contamination of the environment, especially aquatic ecosystems, due to the release of oil and its derivatives.

Tanker Accidents

Incidents involving large cargo ships carrying bulk liquids, such as oil, that can lead to significant environmental disasters when spills occur.