question 3 macro econ question 3 ### Understanding the Market for Oranges**For each of the prices listed in the following table, determine the quantity of oranges demanded, the quantity of oranges supplied, and the direction of pressure exerted on prices in the absence of any price controls.**| Price (Dollars per box) | Quantity Demanded (Millions of boxes) | Quantity Supplied (Millions of boxes) | Pressure on Prices ||--------------------------|---------------------------------------|---------------------------------------|--------------------|| 20 | ________ | ________ | _______ || 30 | ________ | ________ | _______ |**Instructions:**1. Fill in the quantity demanded and quantity supplied for each price level.2. Determine whether the pressure on prices at each price point will cause prices to rise or fall.3. Identify the market equilibrium without any external price control.---A price ceiling below $25 per box in this market will most likely:- Hover Here (expected market behavior with a price ceiling).**Additional Explanation:**- **Short-Run Supply Curve:** Because it takes many years for newly planted orange trees to bear fruit, the supply curve in the short run is nearly vertical. In the short run, the number of oranges supplied is relatively inelastic to price changes. - **Long-Run Supply Curve:** Over the long run, farmers have more flexibility. They can decide whether to plant oranges on their land, plant other crops, or sell the land altogether. Therefore, the long-run supply of oranges is much more price-sensitive compared to the short-run.Assuming long-run demand for oranges is consistent with short-run demand, a price ceiling set below equilibrium price will likely result in a _________ (type of market behavior) that is _________ (degree of severity) in the long run compared to the short run.Fill in the blanks and analyze market behavior through these economic concepts for a comprehensive understanding. Use these insights for predictive market analysis and strategies for better agricultural planning and policy development. ### Price Controls in the Florida Orange MarketThe following graph shows the annual market for Florida oranges, which are sold in units of 90-pound boxes.#### DescriptionUse 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.#### Graph Input Tool: Market for Florida Oranges- **Price (Dollars per box):** 15- **Quantity Demanded (Millions of boxes):** 900- **Quantity Supplied (Millions of boxes):** 378#### Graph ExplanationThe graph depicts the supply and demand curves in the market for Florida oranges. The x-axis represents the quantity of oranges in millions of boxes, and the y-axis shows the price per box in dollars. - **Supply Curve** (Orange Line): Slopes upward, indicating that as the price increases, the quantity supplied increases.- **Demand Curve** (Blue Line): Slopes downward, indicating that as the price decreases, the quantity demanded increases.- **Equilibrium Point**: The intersection of the supply and demand curves indicates the market equilibrium.There are also two dashed lines, one vertical and one horizontal, showing the price of $15 per box and its corresponding quantity supplied (378 million boxes) and quantity demanded (900 million boxes).#### Questions1. **Equilibrium Price and Quantity**: - In this market, the equilibrium price is $___ per box, and the equilibrium quantity of oranges is ___ million boxes.By analyzing the graph you can input the required values, which allows a comprehensive understanding of the real-time adjustments in supply and demand as prices change.

As per the given graph, equilibrium price is $25 per box and equilibrium quantity of oranges is 450…

3. Price controls in the Florida orange market The following graph shows the annual market for Florida oranges, which are sold in units of 90-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. Graph Input Tool Market for Florida Oranges 50 I Price (Dollars per box) 15 45 Supply Quantity Bemanded (Millions of boxes) Quantity Supplied Millions of bokes) 40 900 378 35 30 25 20 Demand 15 10 O 90 180 2r0 360 450 540 630 120 a10 900 QUANTITY (Millions of boxes) In this market, the equilibrium price is $ per box, and the equilibrium quantity of oranges is million boxes. PRICE(Dollars per box)