The following graph shows the annual market for Michigan blueberries, which are sold in units of 50-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. 0 60 120 180 240 300 360 420 480 540 600 50 45 40 35 30 25 20 15 10 in 0 PRICE (Dollars per box) QUANTITY (Millions of boxes) Demand Supply 300, 25 Graph Input Tool Market for Michigan Blueberries Price (Dollars per box) Quantity Demanded (Millions of boxes) Quantity Supplied (Millions of boxes) In this market, the equilibrium price isper box, and the equilibrium quantity of blueberries ismillion boxes. 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. Price Quantity Demanded Quantity Supplied Pressure on Prices (Dollars per box) (Millions of boxes) (Millions of boxes) 15 35 True or False: A price ceiling below $25 per box is a binding price ceiling in this market. True False 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. In 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.
The following graph shows the annual market for Michigan blueberries, which are sold in units of 50-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. 0 60 120 180 240 300 360 420 480 540 600 50 45 40 35 30 25 20 15 10 in 0 PRICE (Dollars per box) QUANTITY (Millions of boxes) Demand Supply 300, 25 Graph Input Tool Market for Michigan Blueberries Price (Dollars per box) Quantity Demanded (Millions of boxes) Quantity Supplied (Millions of boxes) In this market, the equilibrium price isper box, and the equilibrium quantity of blueberries ismillion boxes. 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. Price Quantity Demanded Quantity Supplied Pressure on Prices (Dollars per box) (Millions of boxes) (Millions of boxes) 15 35 True or False: A price ceiling below $25 per box is a binding price ceiling in this market. True False 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. In 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.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
ChapterA: Working With Diagrams
Section: Chapter Questions
Problem 2QP
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Transcribed Image Text:The following graph shows the annual market for Michigan blueberries, which are sold in units of 50-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.
0
60
120
180
240
300
360
420
480
540
600
50
45
40
35
30
25
20
15
10
in
0
PRICE (Dollars per box)
QUANTITY (Millions of boxes)
Demand
Supply
300, 25
Graph Input Tool
Market for Michigan Blueberries
Transcribed Image Text:Price
(Dollars per box)
Quantity Demanded
(Millions of boxes)
Quantity Supplied
(Millions of boxes)
In this market, the equilibrium price isper box, and the equilibrium quantity of blueberries ismillion boxes.
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.
Price
Quantity Demanded
Quantity Supplied
Pressure on Prices
(Dollars per box)
(Millions of boxes)
(Millions of boxes)
15
35
True or False: A price ceiling below $25 per box is a binding price ceiling in this market.
True
False
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. In 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.
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