Hello Experts, I have attached two pictures. The first picture is the graph that should be used to answer the question. The second picture has parts a and b. Some intermediate questions are answered through dropdowns, so I have edited the second image and provided the options that you would have seen in the dropdowns. Some of the answers provided to me in the past by experts have been wrong, kindly consider the question's aspects in an accurate manner. *note that the platform allows you to toggle certain values which change the graph - you will have to mentally do this in order to solve the question* Thank you, Experts. ### Market Equilibrium and Long-Run Supply in the Orange Market#### a)**Market Equilibrium**In this market, the equilibrium price is \$______ per box, and the equilibrium quantity of oranges is ______ million boxes.#### b)**Price and Supply-Demand Dynamics**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** ||-----------------------------|-------------------------------------------|-------------------------------------------|------------------------|| 30 | | | ⬇ Downward? || 20 | | | ⬆ Upward? |**Price Ceiling Impact**A price ceiling below \$25 per box in this market will:- ⬆ cause a surplus?- ➖ have no effect?- ⬇ cause a shortage?**Long-Run Supply Sensitivity**Because it takes many years before newly planted orange trees bear fruit, the supply curve in the short run is almost vertical. In the long run, farmers can decide whether to plant oranges on their land, to plant something else, or to sell their land altogether. Therefore, the long-run supply of oranges is much more price sensitive than the short-run supply of oranges.**Effect of a Price Ceiling in Long Run**Assuming that the long-run demand for oranges is the same as the short-run demand, you would expect a price ceiling that is set below the equilibrium price to result in a:- ### 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.#### Graph Input Tool Instructions: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.#### Market for Florida Oranges Graph Explanation:- **Axes:** - The horizontal axis (X-axis) represents the quantity of oranges in millions of boxes, ranging from 0 to 700 million boxes. - The vertical axis (Y-axis) represents the price per box of oranges in dollars, ranging from $0 to $50 per box.- **Lines:** - The **Supply** line is upward-sloping from left to right, indicating that as the price increases, the quantity supplied also increases. - The **Demand** line is downward-sloping from left to right, indicating that as the price decreases, the quantity demanded increases.- **Equilibrium Point:** - The intersection of the supply and demand lines is the equilibrium point, where the quantity supplied equals the quantity demanded.- **Current Input Values:** - **Price:** $15 per box (represented by a horizontal green line on the graph). - **Quantity Demanded:** 406 million boxes. - **Quantity Supplied:** 210 million boxes.- **Dotted Lines:** - Dotted vertical and horizontal lines connect the current price to the corresponding quantities supplied and demanded on the graph.Use this graph to understand how changes in price affect the quantity demanded and supplied in the Florida orange market. You can adjust the price and observe the resulting changes in quantities to gain better insights into market dynamics.

a) Equilibrium in the orange market occurs when the supply is equal to demands. Therefore, the point…

Answered: a) In this market, the equilibrium…

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC