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Demand, Supply, and Price Relationships for the Dairy Sector, Post‐World War II Period
Author(s) -
Wilson Robert R.,
Thompson Russell G.
Publication year - 1967
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1237206
Subject(s) - period (music) , economics , supply and demand , world war ii , agricultural economics , business , microeconomics , geography , art , archaeology , aesthetics
A simultaneous equation dairy model allowing for possible simultaneity between supplies and demands is formulated and estimated. The findings, which are comparable with those of earlier studies, indicate that the supply of milk is largely predetermined with respect to the price of milk in year t and is more elastic, but still inelastic, with respect to the average price of milk in years t − 1, t − 2, and t − 3. They further indicate that the demand for fluid milk products as well as the demand for manfactured dairy products is inelastic with respect to price and income.