The image contains an educational activity focusing on price controls in the context of orange supply and demand. ### Table for Analyzing Orange Market Conditions**Instructions**: 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 ||-------------------------|------------------------------------------|----------------------------------------|--------------------|| 35 | ___________ | ___________ | ⬇️ || 15 | ___________ | ___________ | ⬆️ |### True or False Question**Question**: A price ceiling below $25 per box is not a binding price ceiling in this market.- [ ] True- [ ] False### Explanation of Supply SensitivityBecause 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.Assuming that the long-run demand for oranges is the same as the short-run demand, you would expect a binding price ceiling to result in a supply that is ___________ in the long run than in the short run.---This exercise involves considering how price ceilings can impact market equilibrium, particularly in agricultural markets with long production cycles like oranges. Students are prompted to fill in values and make predictions based on economic principles. ### 2. Price Controls in the Florida Orange MarketThe following graph illustrates the annual market for Florida oranges, sold in units of 90-pound boxes.**Note:** Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to the graph.**Important:** Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will adjust accordingly.#### Graph Explanation- **Axes:** - The vertical axis represents "PRICE (Dollars per box)," ranging from 0 to 50. - The horizontal axis represents "QUANTITY (Millions of boxes)," ranging from 0 to 300.- **Lines:** - The **Supply** curve is depicted in orange, sloping upwards from the left. - The **Demand** curve is depicted in blue, sloping downwards from the left.- **Equilibrium:** - Indicated by the intersection of the supply and demand curves. Currently, the equilibrium point is not directly marked on the graph.#### Graph Input Tool- **Market for Florida Oranges:** - **Price (Dollars per box):** Adjustable value; initially set to 15. - **Quantity Demanded (Millions of boxes):** Initially set to 174. - **Quantity Supplied (Millions of boxes):** Initially set to 126.**Conclusion:** In this market, enter the equilibrium price and quantity:- The equilibrium price is $____ per box.- The equilibrium quantity of oranges is ____ million boxes.

A "price ceiling" is a kind of price control in which the government sets the maximum price that can…

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) 35 15 O True Quantity Demanded (Millions of boxes) True or False: A price ceiling below $25 per box is not a binding price ceiling in this market. O False Quantity Supplied (Millions of boxes) Pressure on Prices 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. Assuming that the long-run demand for oranges 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

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) 35 15 O True Quantity Demanded (Millions of boxes) True or False: A price ceiling below $25 per box is not a binding price ceiling in this market. O False Quantity Supplied (Millions of boxes) Pressure on Prices 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. Assuming that the long-run demand for oranges 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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. 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) 45 Supply 20 40 Quantity Demanded Quantity Supplied (Millions of boxes) 300 200 35 (Millions of boxes) I 30 25 20 15 Demand 10 50 100 150 200 250 300 350 400 450 500 QUANTITY (Millions of boxes) In this market, the equilibrium price is S per box, and the equilibrium quantity of oranges is million boxes. PRICE (Dollars per box)
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