Let D = Demand, S = Supply, P = Equilibrium

question 85

Multiple Choice

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 decreases, S no change, P and Q decrease.
• B)S decreases, D no change, P increases, Q decreases.
• C)D and S decrease, P and Q increase.
• D)D no change, S decreases, P increases, Q increases.

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