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. The government setting the price of pencils at $0.40 would be an example of an effective

A) price floor.
B) price ceiling.
C) market equilibrium.
D) price surplus.