Graph Input Tool Market for Florida Oranges 50 Price Dollars

Graph Input Tool Market for Florida Oranges 50 Price (Dollars per box) 40 35 30 Demanded900Quantity Supplied Supply (Millions of boxes) (Millions of boxes) 20 15 10 0 90 180 270 360 450 540 630 720 810 900 QUANTITY (Millions of boxes) In this market, the equilibrium price is s per box, and the equililbrium quantity of oranges ismillion 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

Solution

(A) Equilibrium price is determined through the intersection of demand and supply curves. Hence the euilibrium price is 25$ and equilibrium quantity is 450 million boxes.

(B) At 20$ Quantity demanded is 630 millions boxes and quantity supply is 270 millions boxes. Since demand > supply, hence upward pressure on prices. At 30$ Quantity demanded is 270 millions boxes and quantity supply is 630 millions boxes . Since demand < supply, hence downward pressure on prices.

(C) False.. It is not effective price ceiling.

(D) Shortage ...smaller