Answer Happy

Graph Input Tool Market for Florida Oranges Price 20 (Dollars per box) 480 Quantity Demanded (Millions of boxes) Quantity Supplied (Millions of boxes) In this market, the equilibrium price is $ per box, and the equilibrium quantity of oranges is million boxes. For each price 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 Quantity Demanded Quantity Supplied (Millions of boxes) (Millions of boxes) Pressure on Prices (Dollars per box) 15 35 PRICE (Dollars per box) 50 45 Supply Demand T L L 0 0 80 160 240 320 400 480 560 640 720 800 QUANTITY (Millions of boxes) 40 35 (?) 5 320
True or False: A price ceiling above $25 per box is a binding price ceiling in this market. (Economists call a price ceiling that prevents the market from reaching equilibrium a binding price ceiling.) 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 in the long run than in the short run. that is