In this market, the equilibrium price is $ Price (Dollars per box) 20 30 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. O True per box, and the equilibrium quantity of blueberries is Quantity Demanded (Millions of boxes) O False Quantity Supplied (Millions of boxes) True or False: A price ceiling above $25 per box is a binding price ceiling in this market. Pressure on Prices million boxes. 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 ▼ that is in the long run than in the short run.
In this market, the equilibrium price is $ Price (Dollars per box) 20 30 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. O True per box, and the equilibrium quantity of blueberries is Quantity Demanded (Millions of boxes) O False Quantity Supplied (Millions of boxes) True or False: A price ceiling above $25 per box is a binding price ceiling in this market. Pressure on Prices million boxes. 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 ▼ that is in the long run than in the short run.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![2. Price controls in the Michigan 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
30
25
20
15
10
5
0
+
Supply
III
▬▬▬▬▬▬▬▬▬ Demand
1
0 70 140 210 280 350 420 490 560 630 700
QUANTITY (Millions of boxes)
Graph Input Tool
Market for Michigan Blueberries
Price
(Dollars per box)
Quantity
Demanded
(Millions of boxes)
20
420
Quantity Supplied
(Millions of boxes)
?
280](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fecb19277-5771-4dd8-b284-9dbe93d70533%2F87547ea6-2412-420b-acfe-d9eadb673c08%2Ffv8d9xu_processed.png&w=3840&q=75)
Transcribed Image Text:2. Price controls in the Michigan 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
30
25
20
15
10
5
0
+
Supply
III
▬▬▬▬▬▬▬▬▬ Demand
1
0 70 140 210 280 350 420 490 560 630 700
QUANTITY (Millions of boxes)
Graph Input Tool
Market for Michigan Blueberries
Price
(Dollars per box)
Quantity
Demanded
(Millions of boxes)
20
420
Quantity Supplied
(Millions of boxes)
?
280
![In this market, the equilibrium price is
Price
(Dollars per box)
20
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.
30
O True
per box, and the equilibrium quantity of blueberries is
Quantity Demanded
(Millions of boxes)
O False
Quantity Supplied
(Millions of boxes)
True or False: A price ceiling above $25 per box is a binding price ceiling in this market.
Pressure on Prices
million boxes.
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
that is
in the long run than in the short run.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fecb19277-5771-4dd8-b284-9dbe93d70533%2F87547ea6-2412-420b-acfe-d9eadb673c08%2Fdqss3n_processed.png&w=3840&q=75)
Transcribed Image Text:In this market, the equilibrium price is
Price
(Dollars per box)
20
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.
30
O True
per box, and the equilibrium quantity of blueberries is
Quantity Demanded
(Millions of boxes)
O False
Quantity Supplied
(Millions of boxes)
True or False: A price ceiling above $25 per box is a binding price ceiling in this market.
Pressure on Prices
million boxes.
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
that is
in the long run than in the short run.
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