Let D= demand, S = supply, P = equilibrium price, and Q= equilibrium quantity. What happens in the market for tropical hardwood trees if the governments restrict the amount of forest lands that can be logged?
A) D no change, S decreases, P increases, Q increases.
B) D decreases, S no change, P and Q decrease.
C) S decreases, D no change, P increases, Q decreases.
D) D and S decrease, P and Q increase.
C
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Adverse selection occurs when there is
A) full information. B) unobserved behavior. C) an unobserved characteristic. D) a worker who shirks because his boss does not watch him.
Which of the following would shift the investment demand curve leftward?
a. An increase in business taxes. b. A decrease in business taxes. c. A tax credit for new investment. d. Firms are operating their plants at full capacity.
Perfectly competitive markets feature relatively high barriers to entry
a. True b. False Indicate whether the statement is true or false
During which period did the United States experience a trade surplus on goods and services?
a. 1970–1979
b. 1980–1989
c. 1990–1999
d. 2000–2009