Answer:
2) the quantity supplied of pencils would increase
Explanation:
Law of supply: The law of supply deals with the price and quantity supplied and other things remain constant.
It shows a direct relationship between the price of goods and the quantity supplied of a goods, that means when the price of pencil increased, then the quantity supplied of pencil would be increased.
All other options are incorrect, except 2nd option
Answer:
2) The quantity supplied of pencils would increase.
Explanation:
The Law of supply states that, as the price of a good or service increases, the quantity of the goods or services supplied will also increase with all other factors being constant. This explains that as the price of a commodity increases, producers are motivated to supply more of that particular commodity in the market.
