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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?

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) S decreases, D no change, P increases, Q decreases.

C) D decreases, S no change, P and Q decrease.

D) D and S decrease, P and Q increase.




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