### Market for Michigan Blueberries#### Market AnalysisThe provided graph illustrates the market conditions for Michigan blueberries. Two main curves are depicted: the Supply curve (orange) and the Demand curve (blue). The intersection of these curves determines the equilibrium price and quantity in the market.![Graph Explanation]- The vertical axis (Y-axis) represents the price of blueberries per box in dollars, ranging from $0 to $50.- The horizontal axis (X-axis) represents the quantity of blueberries in millions of boxes, ranging from 0 to 600 million boxes.- The equilibrium point is where the supply and demand curves intersect.In the graph:- The equilibrium price is indicated by the green horizontal line.- The equilibrium quantity is shown by the black dotted vertical line.#### Market Stats- **Price:** $15 per box- **Quantity Demanded:** 348 million boxes- **Quantity Supplied:** 180 million boxes#### Questions1. **Determine Equilibrium** In this market, the equilibrium price is \$\_\_\_\_ per box, and the equilibrium quantity of blueberries is \_\_\_\_ million boxes.2. **Calculate Quantities and Pressure on Prices** For each of the prices listed in the table below, determine the quantity of blueberries demanded, the quantity of blueberries supplied, and the direction of the 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 | |--------------------------|-----------------------------------------|----------------------------------------|---------------------| | 15 | | | :arrow_down: | | 35 | | | :arrow_up: |3. **True or False Statement** A price ceiling below \$25 per box is a binding price ceiling in this market. - [ ] True - [ ] False#### Additional Information- It takes six to eight years before newly planted blueberry plants reach full production. Consequently, the short-run supply curve is almost vertical. In the long run, however, farmers can decide whether to plant blueberries, switch to something else, or sell their land, making the long-run supply of blueberries more price sensitive.#### AssumptionsAssuming that long-run demand for blueberries remains the same as short-run demand, one would expect a binding price ceiling to

The market equilibrium is determined by the intersection of the demand and supply curves. It is the…

In this market, the equilibrium price is Price (Dollars per box) 15 35 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. 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 below $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. 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) 15 35 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. 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 below $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. 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.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 8PA

See similar textbooks

Similar questions

13. The variety of supply curves The following graph displays four supply curves (LL, MM, NN, and OO) that intersect at point V. PRICE (Dollars per unit) 20 18 16 14 12 10 8 4 2 0 10 M 2 4 N + 8 10 12 QUANTITY (Units) 14 16 M 18 20 (?)
The following table shows the demand and supply of tickets of a football game which will be held at Shah Alam Stadium. Unit Price (RM) Market Demand (units) Market Supply (units) 20 5000 3500 40 4000 3500 60 3000 3500 80 2000 3500 100 1000 3500 a) On your foolscap paper, draw the demand and supply curves. Label all axes, all curves and the equilibrium point. (6m) b) How much is the equilibrium price and equilibrium quantity? (2m) c) At which price will there be a surplus of 2500 tickets? (1m) d) What will happen when the market price is RM40? Show your answer on the same diagram. (3m) e) Why is the supply of tickets fixed at 3500? (1m)
13) The Table below gives the Demand and Supply schedules of Frisbees. Quantity Demanded per month 1800 1600 1400 1200 1000 800 600 Price ($) 2 4 6 8 10 12 14 Quantity Supplied per month 600 800 1000 1200 1400 1600 1800 Suppose that Demand decreases by 250 Frisbees per month and Supply increases by 550 Frisbees per month. What is the new equilibrium price and quantity of Frisbees?
1. Use the market model of supply and demand to illustrate and explain the impact of the following events on the market for coffee. Make sure to identify which side(s) of the market is impacted, explain why it is impacted, how it is impacted, and the overall impact on the equilibrium price and quantity. a) The price of tea goes up by 100 percent. b) A study is released that links consumption of caffeine to increased incidence of cancer. c) Workers in the coffee industry unionize and negotiate higher wages.
Carefully explain what is happening in the following markets. Indicate the impact if any on demand, supply, price and quantity. In the market for airline tickets, airline carriers have drastically cut fares for international air travel resulting in 3% increase in ticket sales. Meanwhile, recent health considerations due to covid -19 have cause and 11% reduction in the demand for international travel. (i) Impact on Demand? (ii) Impact on Supply? (iii) Impact on Price? (iv) Impact on Quantity?
1. Use the market model of supply and demand to illustrate and explain the impact of the following events on the market for coffee. Make sure to identify which side(s) of the market is impacted, explain why it is impacted, how it is impacted, and the overall impact on the equilibrium price and quantity. a) New harvesting technology is developed which increases worker productivity. b) Torrential flooding in South America ruins a large share of the coffee crop, and at the same time the price of doughnuts triples.
8. The market for pizza has the following demand and supply schedules: Price in $ Quantity Demanded Quantity Supplied 26 4. 135 104 53 81 81 7. 68 98 53 39 110 121 a) Graph the demand and supply curves. (Graph should be properly labelled) b) What is the equilibrium price and equilibrium quantity? c) Show graphically the shifts in demand curve OR supply curve of Pizza în the following cases: Income of the consumers decreases (consider pizza is a normal good) Prices of Burgers increases (consider burgers are substitute to pizza) (1) (1i) (i1) Number of pizza sellers increased.
7 The diagram below shows the demand and supply curves for potatoes, where X is the initial equilibrium. Price X A A B B C C D D S3 C S1 D3 S2 D1 D2 Quantity Following a rise in the price of substitutes to potatoes and an increase in wages for potato farmers, what would be th new equilibrium point?
The following graph shows the monthly demand and supply curves in the market for combs. 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 comb) 528 && 28 72 64 56 48 40 16 Supply Demand 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Combo) Graph Input Tool Market for Combs Price (Dollars per comb) Quantity Demanded (Combs) 24 500 Quantity Supplied (Combs)
a) Elaborate on the concepts of Demand Schedule and Demand Curve, is there any relationship between them? What is reason behind the downward slope of demand curve? b) Following are the supply and demand schedules for the market of Burgers: Price Quantity Demanded Quantity Supplied Rs.400 130 burgers 30 burgers 500 100 50 600 80 80 700 60 90 800 50 100 900 40 120 i. Graph the demand and supply curves. What are the equilibrium price and quantity in this market? ii. If the actual price in this market were above the equilibrium price, what would drive the market toward the equilibrium? iii. If the actual price in this market were below the equilibrium price, what would drive the market toward the equilibrium?
6. Suppose that demand and supply of apples are described by the following equations: P = 100 - 3Q (demand) P = 20 + Q (supply) a) Calculate the equilibrium price and quantity. Illustrate. b) Suppose a $4 tax is placed on apples. What is the new equilibrium quantity? How much do consumers pay to get this quantity? How much do suppliers receive for selling this quantity? Show your results on a supply & demand diagram.
Price per litre ($) Quantity Demanded in 000 Quantity Supplied in 000 litres (per Month) litres (per month) 11 . 0 27 10 2 25 9 4 23 8 6 20 7 8 17 6 10 15 5 12 12 4 14 10 3 16 7 2 18 5 1 3 3 Draw diagram to show supply and demand curve