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. a)In this market, the equilibrium price is sper box, and the equilibrium quantity of oranges ismillion boxes.b)For each of the prices listed in the following table, determine the quantity of oranges demanded, the quantity of oranges supplied, and the direction ofpressure exerted on prices in the absence of any price controls.PriceQuantity DemandedQuantity Supplied(Dollars per box)(Millions of boxes)(Millions of boxes) Pressure on Pricesupward?30downward?20upward?downward?cause a surplus?have no effect?A price ceiling below $25 per box in this market willcause 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, farmerscan 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 ismuch 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 theequilibrium price to result in ain the long run than in the short run.that isshortage?smaller?surplus?larger? 3. Price controls in the Florida orange marketThe 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 ToolMarket for Florida Oranges50I Price(Dollars per box)45Supply1540QuantityDemandedQuantity Supplied(Millions of boxes)40621035(Millions of boxes)302520bemand15105ㅇ70 140 210 280 350 420 490 560 630 700QUANTITY (Millions of boxes)PRICE (Dollars per box)

a) Equilibrium in the orange market occurs when the supply is equal to demands. Therefore, the point…

Answered: a) In this market, the equilibrium…

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 4DQ

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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.

a)
In this market, the equilibrium price is s
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 the 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?
have no effect?
A price ceiling below $25 per box in this market will
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
in the long run than in the short run.
that is
shortage?
smaller?
surplus?
larger?

3. 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
I Price
(Dollars per box)
45
Supply
15
40
Quantity
Demanded
Quantity Supplied
(Millions of boxes)
406
210
35
(Millions of boxes)
30
25
20
bemand
15
10
5
ㅇ
70 140 210 280 350 420 490 560 630 700
QUANTITY (Millions of boxes)
PRICE (Dollars per box)

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