A ban was imposed on the export of oranges to EconoLand. As the Minister of Agriculture you are c…

A ban was imposed on the export of oranges to EconoLand. As the
Minister of Agriculture you are concerned that this ban could
result in a shortage of oranges. Your advisors provide the
following recommendations:

Don't use plagiarized sources. Get Your Custom Essay on
A ban was imposed on the export of oranges to EconoLand. As the Minister of Agriculture you are c…
For as low as $13/Page
Order Essay

Advisor 1: impose a binding price ceiling.

Advisor 2: impose a binding price floor.

Advisor 3: take no action at all.

Determine:

(i)            
The impact of the ban on the market for oranges in EconoLand in
relation to 1. demand, 2. supply, 3. price and 4. quantity.

(ii) The impact on the market for oranges in EconoLand if
Advisor 1 recommendation is implemented in
relation to 1. demand, 2. supply, 3. price and 4. quantity.

(ii) The impact on the market for oranges in EconoLand if
Advisor 2 recommendation is implemented in
relation to 1. demand, 2. supply, 3. price and 4. quantity.

(iii) The impact on the market for oranges in EconoLand if
Advisor 3 recommendation is
implemented  in relation to 1. demand, 2. supply, 3.
price and 4. quantity.

(iv) Which of your three advisors is correct?