What occurs when the terminal bud is pruned out and the effect of auxin decreases?

When the terminal bud is pruned out, it results in a decrease in the levels of auxin, a plant hormone primarily produced in the terminal bud. Auxin is responsible for apical dominance, a phenomenon where the growth of the lateral buds is suppressed in favor of the terminal bud's growth. With the reduction of auxin due to the removal of the terminal bud, the inhibition on the lateral buds is lifted, leading to an enhancement of their growth potential. This allows lateral buds to grow and develop into new shoots, increasing branching and promoting a bushier plant structure.

The other options reflect scenarios that would not happen under these conditions. Lateral bud break cannot be suppressed or eliminated as the removal of the terminal bud directly counters that effect. Similarly, lateral bud break will not simply be delayed, since the purpose of pruning is to encourage new growth by removing the apical dominance effect tied to auxin. Thus, the correct answer highlights the natural response of the plant to utilize the available growth potential in the absence of terminal bud influence.