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:

Benefits Programs

A range of programs provided by employers to offer various non-wage compensations to employees, like health insurance, retirement benefits, and more.

Early Retirement Package

A financial offer made to employees to incentivize them to retire before their standard retirement age, often as part of downsizing or cost-cutting measures.

Silver Handshake

An early retirement incentive in the form of increased pension benefits for several years or a cash bonus

Holiday Pay

Compensation for employees for designated holidays, typically without the requirement of working on those days.