2 The graph below depicts the market for oranges at a local farmers' market. 2 Market for Oranges points Price (dollars) $1.00 S $0.90 eBook $0.80 $0.70 References $0.60 $0.50 X $0.40 $0.30 D $0.20 $0.10 0 20 40 60 80 100 120 140 160 180 200 Quantity (pounds)Instructions: Enter your answers as a whole number. a. If a producer tries to sell oranges at a price of $0.50 per pound, what will be the quantity demanded and quantity supplied at this price? Qg= pounds of oranges Qg= pounds of oranges b. Determine whether there is a surplus or a shortage at a price of $0.50 per pound, and determine the size of the surplus or shortage. At this price, there will be a | (Click to select) | of pounds of oranges. 3 The market for bicycles in rural Indiana is described in the table below. Suppose that public spending improves bicycle lanes in rural areas. As a result, the demand for bicycles shifts to the right by 100 bicycles at every price. 2 Market for Bicycles points Initial Quantity of Quantity of New Quantity Price Bicycles Bicycles of Bicycles (dollars) Demanded Supplied Demanded $200 1, 090 650 1, 100 eBook 225 950 700 1, 050 250 900 800 1,000 275 850 856 950 300 300 900 900 References 325 750 950 350 350 700 1, 000 800 Market for Bicycles 400 350 300 Price (dollars per bicycle) 250 X 200 150 100 600 700 800 900 1000 1100 1200 QuantityInstructions: Enter your answers as a whole number. a. What are the initial equilibrium price and guantity in the bicycle market? P=$ Q= bicycles b. What are the new equilibrium price and quantity in the market? P=$ Q= bicycles c. Because of the increased number of bicycle lanes in rural Indiana, the equilibrium price of bicycles quantity of bicycles O increases by $25; decreases by 50 bicycles O increases by $25; increases by 50 bicycles O decreases by $25; decreases by 50 bicycles O decreases by $25; increases by 50 bicycles and the equilibrium