a) In this market, the equilibrium price is per box, and the equilibrium quantity of oranges is million boxes. b) For each of the prices listed in the following table, determine the quantity of oranges demanded, the quantity of oranges supplied, and lthe direction of pressure exerted on prices in the absence of any price controls. Price Quantity Demanded Quantity Supplied (Dollars per box) (Millions of boxes) (Millions of boxes) Pressure on Prices upward? 30 downward? 20 upward? downward? cause a surplus? A price ceiling below $25 per box in this market will have no effect? cause a shortage? 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 price ceiling that is set below the equilibrium price to result in a that is in the long run than in the short run. shortage? smaller? surplus? larger?
a) In this market, the equilibrium price is per box, and the equilibrium quantity of oranges is million boxes. b) For each of the prices listed in the following table, determine the quantity of oranges demanded, the quantity of oranges supplied, and lthe direction of pressure exerted on prices in the absence of any price controls. Price Quantity Demanded Quantity Supplied (Dollars per box) (Millions of boxes) (Millions of boxes) Pressure on Prices upward? 30 downward? 20 upward? downward? cause a surplus? A price ceiling below $25 per box in this market will have no effect? cause a shortage? 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 price ceiling that is set below the equilibrium price to result in a that is in the long run than in the short run. shortage? smaller? surplus? larger?
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Consumers, Producers, And The Efficiency Of Markets
Section: Chapter Questions
Problem 11PA
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Hello Experts,
I have attached two pictures. The first picture is the graph that should be used to answer the question. The second picture has parts a and b. Some intermediate questions are answered through dropdowns, so I have edited the second image and provided the options that you would have seen in the dropdowns.
Some of the answers provided to me in the past by experts have been wrong, kindly consider the question's aspects in an accurate manner.
*note that the platform allows you to toggle certain values which change the graph - you will have to mentally do this in order to solve the question*
Thank you, Experts.
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