Answer Happy

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. Graph Input Tool (?) Market for Florida Oranges 50 45 Supply Price 15 (Dollars per box) 40 700 Quantity Demanded (Millions of boxes) Quantity Supplied (Millions of boxes) 35 30 25 Z 20 Demand 15 10 I 5 0 0 70 140 210 280 350 420 490 560 630 700 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 Quantity Supplied Price (Dollars per box) (Millions of boxes) (Millions of boxes) Pressure on Prices 15 35 True or False: A price ceiling above $25 per box is a binding price ceiling in this market. O True O False PRICE (Dollars per box) 210