<<olsCENGAGE MINDTAPAplia Homework: Demand, Supply, and Markets10. Price controls in the Florida orange marketThe following graph shows the annual market for Florida oranges, which are sold in units of 90-pound boxes.PRICE (Dollars per box)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.504540353025MyHarper | Students2015 +110500I1SupplyDemand+I190 180 270 360 450 540 630 720 810 900QUANTITY (Millions of boxes)Graph Input ToolMarket for Florida OrangesPrice(Dollars per box)QuantityDemanded(Millions of boxes)3236996&snapshotld-3236996&id=1658344649&15900Quantity Supplied(Millions of boxes)?0 Aplia Homework: Demand, Supply, and MarketsIn this market, the equilibrium price is $Price(Dollars per box)3020For each price listed in the following table, determine the quantity of oranges demanded, the quantity of oranges supplied, and the direction ofpressure exerted on prices in the absence of any price controls.O Trueper box, and the equilibrium quantity of oranges isQuantity Demanded(Millions of boxes)O FalseQuantity Supplied(Millions of boxes)million boxes.Pressure on PricesTrue or False: A price ceiling above $25 per box is a binding price ceiling in this market. (Economists call a price ceiling that prevents the market fromreaching equilibrium a binding price ceiling.)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, farmerscan 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 ismuch 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▼ that isin the long run than in the short run.

Equilibrium in the market occurs at the intersection of market demand and market supply curve. If…

Answered: Price controls in the Florida orange…

Price controls in the Florida orange market following graph shows the annual market for Florida oranges, which are sold in units of 90-pound boxes.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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<<
ols
CENGAGE MINDTAP
Aplia Homework: Demand, Supply, and Markets
10. 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.
PRICE (Dollars per box)
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.
50
45
40
35
30
25
MyHarper | Students
20
15 +1
10
5
0
0
I
1
Supply
Demand
+
I
1
90 180 270 360 450 540 630 720 810 900
QUANTITY (Millions of boxes)
Graph Input Tool
Market for Florida Oranges
Price
(Dollars per box)
Quantity
Demanded
(Millions of boxes)
3236996&snapshotld-3236996&id=1658344649&
15
900
Quantity Supplied
(Millions of boxes)
?
0

Aplia Homework: Demand, Supply, and Markets
In this market, the equilibrium price is $
Price
(Dollars per box)
30
20
For each price 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.
O True
per box, and the equilibrium quantity of oranges is
Quantity Demanded
(Millions of boxes)
O False
Quantity Supplied
(Millions of boxes)
million boxes.
Pressure on Prices
True or False: A price ceiling above $25 per box is a binding price ceiling in this market. (Economists call a price ceiling that prevents the market from
reaching equilibrium a binding price ceiling.)
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
▼ that is
in the long run than in the short run.

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