Refer to the Information Provided in Figure 4

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. Retailers will have an excess supply of pencils if the government will not allow retailers to charge less than ________ for a pencil.

A) $0.50
B) $0.45
C) $0.40
D) the equilibrium price