#### Explanation:

This problem is in reality simply asking you do work out $1000 \times 0.23$.

As we have been told, one pencil is $0.23$, or $23$ cents. The shopkeeper wants $1000$ pencils, so he must pay $1000$ times as many as he would for one pencil, $0.23$.

We will state that $1$ is $1$ dollar.

$0.23 \times 1000 = 230$

230 = $230 The shopkeeper must pay $230 in total for $1000$ pencils at \$.23 each.