2. Price controls in the Florida orange marketThe following graph shows the annual market for Michigan blueberries, which are sold in units of 50-pound boxes.Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.PRICE (Dollars per box)504540353025201510500SupplyDemand80 160 240 320 400 480 560 640 720 800QUANTITY (Millions of boxes)In this market, the equilibrium price is $Graph Input ToolMarket for Michigan BlueberriesPrice(Dollars per box)QuantityDemanded(Millions of boxes)15800per box, and the equilibrium quantity of blueberries isQuantity Supplied(Millions of boxes)million boxes.336 For each of the prices listed in the following table, determine the quantity of blueberries demanded, the quantity of blueberries supplied, and thedirection of pressure exerted on prices in the absence of any price controls.Price(Dollars per box)1535TrueQuantity Demanded(Millions of boxes)True or False: A price ceiling below $25 per box is not a binding price ceiling in this market.FalseQuantity Supplied(Millions of boxes) Pressure on PricesBecause it takes six to eight years before newly planted blueberry plants reach full production, the supply curve in the short run is almost vertical. Inthe long run, farmers can decide whether to plant blueberries on their land, to plant something else, or to sell their land altogether. Therefore, thelong-run supply of blueberries is much more price sensitive than the short-run supply of blueberries.Assuming that the long-run demand for blueberries is the same as the short-run demand, you would expect a binding price ceiling to result in athat isin the long run than in the short run.

At Equilibrium Price, quantity demanded and quantity supplied of goods and services are equal. There…

2. Price controls in the Florida orange market The following graph shows the annual market for Michigan blueberries, which are sold in units of 50-pound boxes. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per box) 50 45 40 35 30 25 20 15 10 5 0 Supply Demand In this market, the equilibrium price is $ +++ 0 80 160 240 320 400 480 560 640 720 800 QUANTITY (Millions of boxes) Graph Input Tool Market for Michigan Blueberries Price (Dollars per box) Quantity Demanded (Millions of boxes) 15 800 per box, and the equilibrium quantity of blueberries is Quantity Supplied (Millions of boxes) million boxes. ? 336

2. Price controls in the Florida orange market The following graph shows the annual market for Michigan blueberries, which are sold in units of 50-pound boxes. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per box) 50 45 40 35 30 25 20 15 10 5 0 Supply Demand In this market, the equilibrium price is $ +++ 0 80 160 240 320 400 480 560 640 720 800 QUANTITY (Millions of boxes) Graph Input Tool Market for Michigan Blueberries Price (Dollars per box) Quantity Demanded (Millions of boxes) 15 800 per box, and the equilibrium quantity of blueberries is Quantity Supplied (Millions of boxes) million boxes. ? 336

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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