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.
Answer: B
Economics
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If a firm with monopoly pricing power in the market faces a demand curve of P = 2,000 - 2Q and marginal cost of MC = 1,100 + 2Q, then the firm will produce
A. 542 units. B. 900 units. C. 200 units. D. 150 units.
Economics
Which of the following is true?
A. Employment and unemployment are both coincident with the business cycle. B. Employment is procyclical and unemployment is coincident with the business cycle. C. Employment is procyclical and unemployment is countercyclical. D. Employment and unemployment are both procyclical.
Economics