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 (Dollars per box) 35 15 Quantity Demanded (Millions of boxes) Quantity Supplied (Millions of boxes) Pressure on Prices True or False: A price ceiling above $25 per box is 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 i 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
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 (Dollars per box) 35 15 Quantity Demanded (Millions of boxes) Quantity Supplied (Millions of boxes) Pressure on Prices True or False: A price ceiling above $25 per box is 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 i 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
Chapter1A: Appendix: Working With Graphs
Section: Chapter Questions
Problem 1E
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Transcribed Image Text: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
(Dollars per box)
35
15
Quantity Demanded
(Millions of boxes)
Quantity Supplied
(Millions of boxes) Pressure on Prices
True or False: A price ceiling above $25 per box is 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
that is
in the long run than in the short run.
Transcribed Image Text:2. 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.
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.
PRICE (Dollars per box)
8222222
50
45
35
20
10
0
Supply
Demand
0
50 100 150 200 250 300 350 400 450 500
QUANTITY (Millions of boxes)
In this market, the equilibrium price is S
Graph Input Tool
Market for Florida Oranges
Price
(Dollars per box)
Quantity
Demanded
(Millions of boxes)
15
500
per box, and the equilibrium quantity of oranges is
Quantity Supplied
(Millions of boxes)
million boxes.
210
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