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) 35 15 O True Quantity Demanded (Millions of boxes) O False Quantity Supplied (Millions of boxes) True or False: A price ceiling below $25 per box is not a binding price ceiling in this market. Pressure on Prices Upward Downward 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 shortage that is larger in the long run than in the short run.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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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)
35
15
O True
Quantity Demanded
(Millions of boxes)
O False
Quantity Supplied
(Millions of boxes)
Pressure on Prices
True or False: A price ceiling below $25 per box is not a binding price ceiling in this market.
Upward
Downward
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
shortage that is larger in the long run than in the short run.
Transcribed Image Text: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) 35 15 O True Quantity Demanded (Millions of boxes) O False Quantity Supplied (Millions of boxes) Pressure on Prices True or False: A price ceiling below $25 per box is not a binding price ceiling in this market. Upward Downward 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 shortage that is larger in the long run than in the short run.
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
10
5
0
t
0
30
Demand
|
|
| |
Supply
60 90 120 150 180 210 240 270 300
QUANTITY (Millions of boxes)
Graph Input Tool
Market for Michigan Blueberries
Price
(Dollars per box)
Quantity
Demanded
(Millions of boxes)
15
174
Quantity Supplied
(Millions of boxes)
0
Transcribed Image Text: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 10 5 0 t 0 30 Demand | | | | Supply 60 90 120 150 180 210 240 270 300 QUANTITY (Millions of boxes) Graph Input Tool Market for Michigan Blueberries Price (Dollars per box) Quantity Demanded (Millions of boxes) 15 174 Quantity Supplied (Millions of boxes) 0
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