2) the quantity supplied of pencils would increase
Explanation:
Law of supply: The law of supply deals with the price and quantity supplied ย 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
Share is the capital of the company, but Debenture is the debt of the company. ... The income earned on shares is the dividend, but the income earned on debentures is interest. The payment of dividend can be made only out of current profits of the business and not otherwise.
Explanation: