Refer to the information provided in Figure below to answer the question. 0.55 0.50 Price (S) X 0.45 0.40 0 Number of pencils Refer to Figure If the government will not allow retailers to charge more than $0.40 for a pencil, which of the following will happen? Select one: 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. The market will be in equilibrium at a price of $0.40. d. A nonprice rationing system such as queuing must be used to ration the available supply of pencils
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