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 I Pricę (Boljars per Боx) 45 15 Supply 40 guantity Buannded. (Millions of 900 378 Supplied TMHlions of Бохes) 35 БОхeS 30 25 Demand 20 15 10 90 180 270 360 450 540 630 720 810 900 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. Quantity Demanded (Millions of boxes) Quantity Supplied (Millions of boxes) Price (Dollars per box) 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 that is short run. PRICE (Dollars per box)
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 I Pricę (Boljars per Боx) 45 15 Supply 40 guantity Buannded. (Millions of 900 378 Supplied TMHlions of Бохes) 35 БОхeS 30 25 Demand 20 15 10 90 180 270 360 450 540 630 720 810 900 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. Quantity Demanded (Millions of boxes) Quantity Supplied (Millions of boxes) Price (Dollars per box) 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 that is short run. PRICE (Dollars per box)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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
I Pricę
(Boljars per
Боx)
45
15
Supply
40
guantity
Buannded.
(Millions of
900
378
Supplied
TMHlions of
Бохes)
35
БОхeS
30
25
Demand
20
15
10
90 180 270 360 450 540 630 720 810 900
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.
Quantity Demanded
(Millions of boxes)
Quantity Supplied
(Millions of boxes)
Price
(Dollars per box)
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
that is
short run.
PRICE (Dollars per box)
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