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 ingut tool to help you answer the folowing questions, Yosu wil hot be gradeat on any changes you make to ths graph you make to this gragh 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 T 45 40 35 30 26 20 15 10 Price (Doliars per I) 18 of boves) Millions of bexes) 0 90 180 270 360 450 540 630 720 810 900 QUANTITY (Milions of boxes)

Explanation / Answer

Answer to this Question is Quite Simple and I'll make it understandable for you. Let's Begin .

The Equilibrium Price is $ 25 because at this point Demand = Supply. The Equilibrium Quantity of Orange is $450.

Now let's go to the Table :

The Pressure on Price is Upward when Demand for a good is increased as goods are limited and demand of that good is large. So people would be willing to pay more to purchase the same good .

Pressure on Priceis Downward when Supply is more than Demand because people are not willing to buy the good and sellers would reduce the prices to induce the Buyers.

Note : I have written in Approx quantities because all the relevant points of demand and supply of Price 30 and 20 lie between the marked ones and value of each unit is not given and visible too. I think that would not be an issue in Computer.

True or false : FALSE. The explanation goes like this : Price Veering is always kept below the Equilibrium price . It's propose is to restrict the producers from going beyond the ceiled Price . But take a scenario when Price Ceiling is above Equilibrium , what does that mean ? It means that Producers are instructed to not increase the Prices than the Amount which is greater than What is the ideal amount ( Equilibrium Price ) . This simply makes no sense. So Price Ceiling cannot be more than Equilibrium Price.

I hope this answer is Clear , Do ask in case of any Queries.

My Purpose is to make the Subject Easier for You. I hope I did that !

Best of Luck ! Keep Chegging !

Price Quantity Demanded Quantity Supplied Pressure on Prices 30 190 ( approx ) 480 ( Approx ) Prices will be less ( Downward Pressure on Prices ) 20 650 ( approx ) 420 ( Approx ) Price will be More( Upward Pressure on Process)

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