1 . Price controls in the Florida orange market The following graph shows the annual market for Michigan blueberries. which are sold in units of 50-pound boxes. Use the graph lnput 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 eld, the graph and any corresponding amounts in each grey eld will change accordingly. K'\\I Graph Input Tool 12,! 50 _ Market for Michigan Blueberries 45 . | | Prlc'e 15 w __ Supply {Dollars per box) - A Quantity Quantity Supplied g :35 Demanded 522 (Millions of boxes) 373 2 {Millions of boxes) 3 so E 25 _ -+ O I E- 20 - I b l a 15 1- Pee\" o. 10 I I I I I I 5 T I I I 0 l l l lJ I II I l l l D 90 18-0 2'l'CI 3-60 450 540 6230 T20 610 900 QUANTITY [Mil lions of boxes) In this market, the equilibrium price is 5 per box, and the equilibrium quantity of blueberries is million boxes. For each of the prlces listed lo the followlng table, determine the quantity of blueberries demanded, the guantlty of blueberries suppiled, and the dlrectlon of pressure exerted on prlees ln the absence of any price controls. Price Qua ntlty Demanded Quantity Supplied (Dollars per hex) (Millions of boxes) ( Millions of exes) Pressure on Prices 15 |:| E V 35 \\:l E ' True or False: A price ceiling below $25 per box is nota binding price ceiling in this market. (:3 True 0 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 landr to plant something else, or to sell their land altogether. Therefore, the long-run supplyr 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 7 that is v in the long run than in the short run