DEMAND AND PRICE-MARKUP FUNCTIONS FOR CANNED CLING PEACHES AND FRUIT COCKTAIL

Abstract

This study formulates and estimates a six-equation model for canned cling peaches and fruit cocktail in which processors are viewed as price setters, with qualities not sold at the set price carried over to the next year. The system consists of two price-markup equations, two quantity-dependent demand equations and two inventory change identities. The three-stage least squares estimation results tend to support the behavioral hypotheses.Demand and Price Analysis,