Attempts Keep the Highest/4 1. 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. NBK BRB PROCE (Dolar per box) 10 5 • Graph Input Tool Market for Michigan Blueberries Supply Price (Dollars per box) 15 Quantity Demanded 500 Quantity Supplied (Man of box) 210 (Mons of box) Demand 50 100 150 200 250 300 350 400 450 500 QUANTITY (Mons of In this market, the equilibrium price is per box, and the equilibrium quantity of blueberries is million boxes. For each of the prices listed in the following table, determine the quantity of blueberries demanded, the quantity of blueberries supplied, and the direction of pressure exerted on prices in the absence of any price controls. Price (Dollars per box) Quantity Demanded Quantity Supplied (Millions of boxes) (Millions of boxes) Pressure on Prices 15 35 True or False: A price ceiling below $25 per box is a binding price ceiling in this market. O True O False Because it takes six to eight years before newly planted blueberry plants reach full production, the supply curve in the short run is almost vertical. In the long run, farmers can decide whether to plant blueberries on their land, to plant something else, or to sell their land altogether. Therefore, the long-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 a in the long run than in the short run. that is
Attempts Keep the Highest/4 1. 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. NBK BRB PROCE (Dolar per box) 10 5 • Graph Input Tool Market for Michigan Blueberries Supply Price (Dollars per box) 15 Quantity Demanded 500 Quantity Supplied (Man of box) 210 (Mons of box) Demand 50 100 150 200 250 300 350 400 450 500 QUANTITY (Mons of In this market, the equilibrium price is per box, and the equilibrium quantity of blueberries is million boxes. For each of the prices listed in the following table, determine the quantity of blueberries demanded, the quantity of blueberries supplied, and the direction of pressure exerted on prices in the absence of any price controls. Price (Dollars per box) Quantity Demanded Quantity Supplied (Millions of boxes) (Millions of boxes) Pressure on Prices 15 35 True or False: A price ceiling below $25 per box is a binding price ceiling in this market. O True O False Because it takes six to eight years before newly planted blueberry plants reach full production, the supply curve in the short run is almost vertical. In the long run, farmers can decide whether to plant blueberries on their land, to plant something else, or to sell their land altogether. Therefore, the long-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 a in the long run than in the short run. that is
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Transcribed Image Text:Attempts
Keep the Highest/4
1. 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.
NBK BRB
PROCE (Dolar per box)
10
5
•
Graph Input Tool
Market for Michigan Blueberries
Supply
Price
(Dollars per box)
15
Quantity
Demanded
500
Quantity Supplied
(Man of box)
210
(Mons of box)
Demand
50 100 150 200 250 300 350 400 450 500
QUANTITY (Mons of
In this market, the equilibrium price is
per box, and the equilibrium quantity of blueberries is
million boxes.
For each of the prices listed in the following table, determine the quantity of blueberries demanded, the quantity of blueberries supplied, and the
direction of pressure exerted on prices in the absence of any price controls.
Price
(Dollars per box)
Quantity Demanded
Quantity Supplied
(Millions of boxes)
(Millions of boxes) Pressure on Prices
15
35
True or False: A price ceiling below $25 per box is a binding price ceiling in this market.
O True
O False
Because it takes six to eight years before newly planted blueberry plants reach full production, the supply curve in the short run is almost vertical. In
the long run, farmers can decide whether to plant blueberries on their land, to plant something else, or to sell their land altogether. Therefore, the
long-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 a
in the long run than in the short run.
that is
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