ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
Bartleby Related Questions Icon

Related questions

Question

Can you please answer and get back to me as soon as you can, I have 2 snippet's below


Thanks

**Price Controls in the Florida Orange Market**

The graph below illustrates the annual market for Michigan blueberries, with sales measured in units of 50-pound boxes.

**Instructions:**
Use the graph input tool to assist in answering the following questions. Any changes you make to the graph for your analysis will not affect your final grade.

**Note:** Inputting a value in a white field will automatically update the graph and the corresponding amounts in each grey field accordingly.

---

### Graph: Market for Michigan Blueberries

- **Axes:**
  - **X-axis:** Quantity (Millions of boxes)
  - **Y-axis:** Price (Dollars per box)

- **Lines:**
  - **Supply Curve (Orange):** Slopes upward from left to right.
  - **Demand Curve (Blue):** Slopes downward from left to right.
  
- **Equilibrium Point:** Where the supply and demand curves intersect.

- **Price Level (Green Line at $15):**
  - Shows a horizontal price control line at $15.

- **Vertical Black Dotted Line:**
  - Indicates a set quantity level at the controlled price.

### Graph Input Tool:

- **Market for Michigan Blueberries:**
  - **Price (Dollars per box):** 15
  - **Quantity Demanded (Millions of boxes):** 522
  - **Quantity Supplied (Millions of boxes):** 378

These elements allow for analysis of how changes in price controls can impact supply and demand in the market. Adjust the values to explore different scenarios and their effects on the market equilibrium.
expand button
Transcribed Image Text:**Price Controls in the Florida Orange Market** The graph below illustrates the annual market for Michigan blueberries, with sales measured in units of 50-pound boxes. **Instructions:** Use the graph input tool to assist in answering the following questions. Any changes you make to the graph for your analysis will not affect your final grade. **Note:** Inputting a value in a white field will automatically update the graph and the corresponding amounts in each grey field accordingly. --- ### Graph: Market for Michigan Blueberries - **Axes:** - **X-axis:** Quantity (Millions of boxes) - **Y-axis:** Price (Dollars per box) - **Lines:** - **Supply Curve (Orange):** Slopes upward from left to right. - **Demand Curve (Blue):** Slopes downward from left to right. - **Equilibrium Point:** Where the supply and demand curves intersect. - **Price Level (Green Line at $15):** - Shows a horizontal price control line at $15. - **Vertical Black Dotted Line:** - Indicates a set quantity level at the controlled price. ### Graph Input Tool: - **Market for Michigan Blueberries:** - **Price (Dollars per box):** 15 - **Quantity Demanded (Millions of boxes):** 522 - **Quantity Supplied (Millions of boxes):** 378 These elements allow for analysis of how changes in price controls can impact supply and demand in the market. Adjust the values to explore different scenarios and their effects on the market equilibrium.
In this market, the equilibrium price is $________ per box, and the equilibrium quantity of blueberries is ________ million boxes.

**Table for Price Analysis:**

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 for each listed price.

| Price (Dollars per box) | Quantity Demanded (Millions of boxes) | Quantity Supplied (Millions of boxes) | Pressure on Prices          |
|-------------------------|---------------------------------------|---------------------------------------|-----------------------------|
| 35                      |                                       |                                       | ⬇️                            |
| 15                      |                                       |                                       | ⬇️                            |

**True or False:**

A price ceiling below $25 per box is not a binding price ceiling in this market.

- ⭕ True
- ⭕ False

**Explanation:**

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.
expand button
Transcribed Image Text:In this market, the equilibrium price is $________ per box, and the equilibrium quantity of blueberries is ________ million boxes. **Table for Price Analysis:** 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 for each listed price. | Price (Dollars per box) | Quantity Demanded (Millions of boxes) | Quantity Supplied (Millions of boxes) | Pressure on Prices | |-------------------------|---------------------------------------|---------------------------------------|-----------------------------| | 35 | | | ⬇️ | | 15 | | | ⬇️ | **True or False:** A price ceiling below $25 per box is not a binding price ceiling in this market. - ⭕ True - ⭕ False **Explanation:** 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.
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Economics
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:9780190931919
Author:NEWNAN
Publisher:Oxford University Press
Text book image
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Text book image
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Text book image
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Text book image
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education