2. Price controls in the Florida orange market The following graph shows the ann

Question

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 40 35 30 Price (Dollars per box) 15 Supply Quantity Demanded (Millions of boxes) Quantity Supplied (Millions of boxes) 900 378 20 15 10 Demand 0 90 180 270 360 450 540 630 720 810 900 QUANTITY (Millions of boxes) In this market, the equilibrium price is $ per box, and the equilibrium quantity of oranges is million boxes

Explanation / Answer

Answer to blank 1: $25

Answer to blank 2: 450

Ans: False

Answer to blank 3: Shortage

Answer to blank : Larger

Explanation:

A binding price ceiling always creates a shortage , but the magnitude of the shortage may differ between the short run and the long run.

Price($) QD (millions of boxes) QS (millions of boxes) Pressure on prices 35 0 522 Downward 15 900 378 Upward

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