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:

The Law of supply states that, as the price of a good or service increases, the quantity of the goods or services supplied will also increase with all other factors being constant. This explains that as the price of a commodity increases, producers are motivated to supply more of that particular commodity in the market.

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