Decision trees can only be used to analyze sequential games

What would be the most likely effect in the market for OPEC oil if the U.S. were to impose a legal ceiling price on crude petroleum produced domestically? Assume their price is far below the current world price?

A) The demand would decrease. B) The demand would increase. C) The supply would decrease. D) The supply would increase. E) Only the quantity would change, not the demand or the supply.

The federal courts are increasingly willing to tolerate resale price maintenance agreements between manufacturers and retailers

A) when they are necessary to prevent predatory pricing. B) when they enable small businesses to survive more profitably. C) when they provide retailers with incentive to supply customer services desired by manufacturers. D) whenever both parties voluntarily agree on them. E) whenever they are necessary to cover sunk costs.