2. 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 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. PRICE (Dollars per box) 30 50 & 88 35 40 10 0 Graph Input Tool Market for Michigan Blueberries Price (Dollars per box) 15 Supply Quantity Demanded (Millions of boxes) 800 Quantity Supplied (Millions of boxes) Demand 80 100 240 320 400 400 500 640 720 800 QUANTITY (Millions of boxes) In this market, the equilibrium price is $25 per box, and the equilibrium quantity of blueberries is 400 million boxes. ? In this market, the equilibrium price is $25 per box, and the equilibrium quantity of blueberries is 400 million boxes. For each of the prices listed in the following table, determine the quantity of blueberries demanded, the quantity of blueberries supplied, and the direction of pressure exerted on prices in the absence of any price controls. Price (Dollars per box) Quantity Demanded (Millions of boxes) Quantity Supplied (Millions of boxes) Pressure on Prices 35 800 15 True or False: A price ceiling above $25 per box is not a binding price ceiling in this market. True O 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 land, to plant something else, or to sell their land altogether. Therefore, the long-run supply 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 in the long run than in the short run. that is Grade It Now Save & Continue