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Assume the market for pencils is competitive and originally in equilibrium

Economics

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Assume the market for pencils is competitive and originally in equilibrium. As a result of an increase in the price of graphite, the supply of pencils decreases. What is true of the new equilibrium?

A. The price is higher while the quantity exchanged decreases.

B. The price is higher and the quantity exchanged increases.

C. The price is lower and the quantity exchanged decreases.

D. The price is lower while the quantity exchanged increases.