Quote Originally Posted by Linus
This is the same question I asked, but replacing $3 with a "nice pencil." You're the terrible person now, HA!
NOPE! Not only is the question not the same, but good ol' Proot said that if he saw someone drop the pencil, he'd give it back! Oh-ho!

Anyway, onto the question, if I saw someone drop it, then yes, I'd give it back. If not, then it's up for grabs unless you notice that it is a very very nice pencil (some pencils cost a hefty amount) and if so, I'd leave it there... or if it was at a store or something, place it in lost and found.