According to the law of supply, if the price of pencil increased, everything else held constant
1) the supply of pencil would decrease
2) the quantity supplied of pencils would increase
3) the demand for pencils would increase
4) the supply of pencils would be unchanged

2) the quantity supplied of pencils would increase

Explanation:

Law of supply: The law of supply deals with the price and quantity supplied  and other things remain constant.

It shows a direct relationship between the price of goods and the quantity supplied of a goods, that means when the price of pencil increased, then the quantity supplied of pencil would be increased.

All other options are incorrect, except 2nd option

the specific actions take by the fed. what the fed was attempting to do by taking these actions. the result of the actions taken by the fed

answer///supply is elastic, and demand is inelastic;