The Following Graph Shows The Annual Market For Florida Oran
The Following Graph Shows The Annual Market For Florida Oranges Which
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. In this market, the equilibrium price is X per box, and the equilibrium quantity of oranges is X million boxes. What is X? 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. True or False: A price ceiling above $25 per box is not a binding price ceiling in this market. (Hint: Economists call a price ceiling that prevents the market from reaching equilibrium a binding price ceiling.) · True · False 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 binding price ceiling to result in a (Shortage/ Surplus) that is (Larger/ Smaller) in the long run than in the short run.
Another supply and demand puzzle The market price of hamburgers in a college town increased recently, and the students in an economics class are debating the cause of the price increase. Some students suggest that the price increased because the price of beef, an important ingredient for making hamburgers, has increased. Other students attribute the increase in the price of hamburgers to a recent increase in the price of pizza at local pizza parlors. Everyone agrees that the increase in the price of pizza was caused by a recent increase in the price of marinara sauce, which is not generally used in making hamburgers. Assume that burger joints and pizza parlors are entirely separate entities—that is, there aren't places that serve both hamburgers and pizza. The first group of students thinks the reason for the increase in the price of hamburgers is that the price of beef, an important ingredient for making hamburgers, has increased. On the following graph, adjust the supply and demand curves to illustrate the first group’s explanation for the increase in the price of hamburgers. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. The second group of students attributes the increase in the price of hamburgers to the increase in the price of pizza at local pizza parlors. On the following graph, adjust the supply and demand curves to illustrate the second group’s explanation for the increase in the price of hamburgers. Suppose that both of the causes suggested by the students are partly responsible for the increase in the price of hamburgers. Based on your analysis of the explanations offered by the two groups of students, how would you figure out which of the possible causes is the dominant cause of the increase in the price of hamburgers? A. Whichever change occurred first must have been the primary cause of the change in the price of hamburgers. B. If the equilibrium quantity of hamburgers decreases, then the demand shift in the market for hamburgers must have been larger than the supply shift. C. If the equilibrium quantity of hamburgers decreases, then the supply shift in the market for hamburgers must have been larger than the demand shift. D. If the price increase was small, then the supply shift in the market for hamburgers must have been larger than the demand shift. What is the correct answer?
Market equilibrium and disequilibrium The following graph shows the monthly demand and supply curves in the market for keyboards. Use the graph input tool to help you answer the following questions. Enter an amount into the Price field to see the quantity demanded and quantity supplied at that price. 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. The equilibrium price in this market is X per keyboard, and the equilibrium quantity is X keyboards bought and sold per month. What is X? Complete the following table by indicating at each price whether there is a shortage or surplus in the market, the amount of that shortage or surplus, and whether this places upward or downward pressure on prices. At 60 will the Pressure be upward or downward? At 40 will the Pressure be upward or downward?
Movements along versus shifts of demand and supply curves The following two graphs depict the market for cereal. On the first graph that follows, show the effect of a shift of the entire supply curve resulting from suppliers producing less cereal at every given price. Note: Select and drag the curve to the desired position. The curve will snap into position, so if you try to move the curve and it snaps back to its original position, just drag it a little farther. On the next graph, show the effect of a movement along a fixed supply curve that results from a decrease in the price of cereal, with every other factor held constant. Now consider the market for lumber. Complete the following table by indicating whether each event will cause a movement along the supply curve for lumber or a shift of the supply curve for lumber, holding all else constant.