-The Table Below Shows the Market for Fuji Apples in the Country

question 112

Essay

-The table below shows the market for fuji apples in the country of Westchester.
a)What is the equilibrium values of price and quantity? Suppose that the government imposes a price floor which is $0.50 different form the present equilibrium price.
b)What is the resulting shortage/surplus? Suppose,instead that the government imposes a price ceiling that is $1 different from the present equilibrium price.
c)What would be the resulting shortage/surplus?

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Definitions:

Section 1231 Property

Refers to a type of property, both tangible and depreciable, used in a business and held for more than one year, which qualifies for tax treatment that combines aspects of capital gains and ordinary income tax rates.

Trade or Business

Activity conducted for the purpose of earning income or profit, involving regular and continuous activities in a particular field.

Deemed Worthless

A term referring to assets that have become valueless and are recognized as a loss for tax purposes.

Long-Term Loss

A loss realized from the sale of an asset held for more than one year, which can offset long-term capital gains.