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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 45 Price (Dollars per box) 15 Supply 40 Quantity 174 Quantity Supplied (Millions of boxes) 126 35 Demanded (Millions of boxes) Depand 5 0 0 30 60 90 120 150 180 210 240 270 300 QUANTITY (Millions of boxes) In this market, the equilibrium price is $ per box, and the equilibrium quantity of oranges is million boxes. 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 Quantity Supplied Quantity Demanded (Dollars per box) (Millions of boxes) (Millions of boxes) Pressure on Prices 15 35 True or False: A price ceiling below $25 per box is not a binding price ceiling in this market. O True O False 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 PRICE (Dollars per box) 10

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 45 Price (Dollars per box) 15 Supply 40 Quantity 174 Quantity Supplied (Millions of boxes) 126 35 Demanded (Millions of boxes) Depand 5 0 0 30 60 90 120 150 180 210 240 270 300 QUANTITY (Millions of boxes) In this market, the equilibrium price is $ per box, and the equilibrium quantity of oranges is million boxes. 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 Quantity Supplied Quantity Demanded (Dollars per box) (Millions of boxes) (Millions of boxes) Pressure on Prices 15 35 True or False: A price ceiling below $25 per box is not a binding price ceiling in this market. O True O False 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 PRICE (Dollars per box) 10

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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 45 Price 15 (Dollars per box) Supply 40 Quantity 174 Quantity Supplied (Millions of boxes) 35 Demanded (Millions of boxes) Depand In this market, the equilibrium price is $ per box, and the equilibrium quantity of oranges is million boxes. 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. Quantity Demanded Quantity Supplied Price (Dollars per box) (Millions of boxes) (Millions of boxes) Pressure on Prices 15 35 True or False: A price ceiling below $25 per box is not a binding price ceiling in this market. O True O False 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 PRICE (Dollars per box) 20 15 10 5 III 0 0 30 60 90 120 150 180 210 240 270 300 QUANTITY (Millions of boxes) 126
Transcribed Image Text: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 45 Price 15 (Dollars per box) Supply 40 Quantity 174 Quantity Supplied (Millions of boxes) 35 Demanded (Millions of boxes) Depand In this market, the equilibrium price is $ per box, and the equilibrium quantity of oranges is million boxes. 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. Quantity Demanded Quantity Supplied Price (Dollars per box) (Millions of boxes) (Millions of boxes) Pressure on Prices 15 35 True or False: A price ceiling below $25 per box is not a binding price ceiling in this market. O True O False 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 PRICE (Dollars per box) 20 15 10 5 III 0 0 30 60 90 120 150 180 210 240 270 300 QUANTITY (Millions of boxes) 126
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