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?
OD and S decrease, P and Q increase
OD decreases, S no change, P and Q decrease
OD no change, S decreases, P increases, Q increases
OS decreases, D no change, P increases, Q decreases