Question 2 Market researchers have studied the market for orange juice, and their estimates for the supply and the demand for orange juice per month are as follows: Price per gallon ($) Quantity demanded 200 Quantity Supplied 250 600 1 200 300 500 150 400 400 300 200 100 500 50 600 a. Using the above data, graph the demand for and the supply of orange juice. Identify the equilibrium point as E, and use dotted lines to connect E to the equilibrium price on the price axis and equilibrium quantity on the quantity axis. b. Assume that the government decided to set a price ceiling of $100 per gallon. i) Define price ceiling 11) Explain three effects unat unis legal maximum price will have on the supply of orange juice in the market. (Draw a new hypothetical diagram to illustrate)

Question 2 Market researchers have studied the market for orange juice, and their estimates for the supply and the demand for orange juice per month are as follows: Price per gallon ($) Quantity demanded 200 Quantity Supplied 250 600 1 200 300 500 150 400 400 300 200 100 500 50 600 a. Using the above data, graph the demand for and the supply of orange juice. Identify the equilibrium point as E, and use dotted lines to connect E to the equilibrium price on the price axis and equilibrium quantity on the quantity axis. b. Assume that the government decided to set a price ceiling of $100 per gallon. i) Define price ceiling 11) Explain three effects unat unis legal maximum price will have on the supply of orange juice in the market. (Draw a new hypothetical diagram to illustrate)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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