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

question 461

Multiple Choice

Let D = demand, S = supply, P = equilibrium price, 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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Definitions:

Unenforceable Contract

An agreement that, due to certain legal deficiencies, cannot be upheld or enforced by a court of law.

Court of Law

A governmental institution authorized to resolve legal disputes between parties and administer justice in civil, criminal, and administrative matters.

Complete Contract

A contract that includes all the terms and conditions agreed upon by the parties, leaving no ambiguities.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States.