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The Equilibrium Market Price of Lead Pencils Would Decrease and the Quantity

Question 5

Multiple Choice

The equilibrium market price of lead pencils would decrease and the quantity of pencils produced and sold would increase if:


A) the price of graphite (pencil lead) decreased.
B) pencil workers obtained higher wages.
C) the price of word processors decreased.
D) the price of pens, a substitute for pencils, increased.

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