5) The above diagram shows the market for oranges given current market supply and demand conditions....

  

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5) The above diagram shows the market for oranges given current market supply and demand conditions. The government passes the law declaring current equilibrium price to be the "fair" price, and legally imposing "price ceiling" on the price of oranges. Next, suppose that demand and supply conditions change in the following way: foreign producers bring more oranges to the market, while consumers decide to consume more tangerines and fewer oranges. Such change in market conditions would lead to equilibrium price and Finally, equilibrium quantity will A) lower; no excess supply; either decrease or increase. B) higher; excess supply; either decrease or increase. C) higher; no excess supply; either decrease or increase. D) lower; excess supply; decrease. E) lower; no excess supply; increase. p 14 10- 875 7 5- 40 60 70 S D 140 Q 5) The above diagram shows the market for oranges given current market supply and demand conditions. The government passes the law declaring current equilibrium price to be the "fair" price, and legally imposing "price ceiling" on the price of oranges. Next, suppose that demand and supply conditions change in the following way: foreign producers bring more oranges to the market, while consumers decide to consume more tangerines and fewer oranges. Such change in market conditions would lead to equilibrium price and Finally, equilibrium quantity will A) lower; no excess supply; either decrease or increase. B) higher; excess supply; either decrease or increase. C) higher; no excess supply; either decrease or increase. D) lower; excess supply; decrease. E) lower; no excess supply; increase. p 14 10- 875 7 5- 40 60 70 S D 140 Q

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The detailed answer for the above question is provided below The correct answer is D lower excess su... View the full answer