Oct 28 Primary and Derived Supply and Demand Applications

Oct 28 Primary and Derived Supply and Demand Applications -...

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    Derived and Primary Supply and  Demand Applications (10/28/10) AEC 305, Food and Agricultural Marketing Principles AEC 305, Food and Agricultural Marketing Principles Today:       Applications from “The Economics of Food.”     Exam II Review      Journals due Next Tuesday (11/2/10)  Exam II
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    Farm and Retail Prices AEC 305, Food and Agricultural Marketing Principles AEC 305, Food and Agricultural Marketing Principles Price Quantity S R   (Derived or Consumer/Retail Supply) S F  (Primarily or Farm-Level Supply)   P R D R  (Primary or Consumer/Retail Demand) D F  (Derived or Farm-Level Demand) P F Q R  = Q  F  = Q
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    Derived Demand/Derived Supply  Shifters Shifters of the derived demand include: Any primary demand shifter (e.g. income, price of  substitutes and compliments, taste and preferences,  population, ect.) Change in marketing costs (e.g., transportation, labor,  storage, ect.) AEC 305, Food and Agricultural Marketing Principles AEC 305, Food and Agricultural Marketing Principles Shifters of the derived supply include: Any primary supply shifter (e.g. price of inputs, price of  alternative commodities/products, weather, technology,  etc.) Change in marketing costs (e.g., transportation, labor,  storage, ect.)
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    Farm and Retail Prices AEC 305, Food and Agricultural Marketing Principles AEC 305, Food and Agricultural Marketing Principles Price Quantity S R   (Derived or Consumer/Retail Supply) S F  (Primarily or Farm-Level Supply)   P R D R  (Primary or Consumer/Retail Demand) D F  (Derived or Farm-Level Demand) P F Q R  = Q  F  = Q P R  – P F  = MM (marketing  margin). Note constant  marketing margin given  parallel slope
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    Supply and Demand Equibrium (Consumer (Retail) vs Producer (Farm) Level AEC 305, Food and Agricultural Marketing Principles AEC 305, Food and Agricultural Marketing Principles D R  (Primary or Consumer/Retail Demand): D F  (Derived or Farm-Level Demand):
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This note was uploaded on 01/13/2011 for the course AEC aec 305 taught by Professor Dr.williamm.snell during the Spring '10 term at Kentucky.

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Oct 28 Primary and Derived Supply and Demand Applications -...

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