In this market, the equilibrium price is per box, and the equilibrium quantity of blueberries is million boxes. For each of the prices listed in the following table, 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. Price Quantity Demanded Quantity Supplied Pressure on Prices (Dollars per box) (Millions of boxes) (Millions of boxes) 15 35 True or False: A price ceiling below $25 per box is not a binding price ceiling in this market. True False 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.
In this market, the equilibrium price is per box, and the equilibrium quantity of blueberries is million boxes. For each of the prices listed in the following table, 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. Price Quantity Demanded Quantity Supplied Pressure on Prices (Dollars per box) (Millions of boxes) (Millions of boxes) 15 35 True or False: A price ceiling below $25 per box is not a binding price ceiling in this market. True False 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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
In this market, the equilibrium price is
per box, and the equilibrium quantity of blueberries is
million boxes.
For each of the prices listed in the following table, 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.
|
Price
|
Quantity Demanded
|
Quantity Supplied
|
Pressure on Prices
|
|---|---|---|---|
|
(Dollars per box)
|
(Millions of boxes)
|
(Millions of boxes)
|
|
| 15 |
|
|
|
| 35 |
|
|
True or False: A price ceiling below $25 per box is not a binding price ceiling in this market.
True
False
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.
Transcribed Image Text:The following graph shows the annual market for Michigan blueberries, which are sold in units of 50-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.
PRICE (Dollars per box)
50
45
40
35
30
25
20
10
10
10
5
0
Demand
Supply
0 30 80 90 120 150 180 210 240 270 300
QUANTITY (Millions of boxes)
Graph Input Tool
Market for Michigan Blueberries
Price
(Dollars per box)
Quantity
Demanded
(Millions of boxes)
15
174
Quantity Supplied
(Millions of boxes)
0
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