Refer to the Information Provided in Figure 4

question 122

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 less than $0.50 for a pencil, which of the following will happen?

• A) Demand must eventually increase so that the market will come into equilibrium at a price of $0.50.
• B) Supply must eventually decrease so that the market will come into equilibrium at a price of $0.50.
• C) Retailers will have an excess supply of pencils.
• D) The market will be in equilibrium at a price of $0.50.

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Definitions:

Opera Singer

A performer, usually professionally trained, who specializes in singing classical music compositions in operas.

Rembrandt Drawing

An artwork rendered in pencil, ink, or another medium by Rembrandt van Rijn, a renowned Dutch artist known for his paintings and drawings.

Breach Of Warranty

Occurs when one party fails to uphold a promise, claim, or assurance made under a warranty within a contract, which may result in legal action but does not typically nullify the agreement.

Breach Of Condition

A violation of a specific condition in a contract that justifies the non-breaching party to terminate the contract and seek compensation.