Demand and Supply

2017 ◽  
Author(s):  
George C. Davis ◽  
Elena L. Serrano
Keyword(s):  
Food System ◽  
Supply And Demand ◽  
Market Equilibrium ◽  
Caloric Intake ◽  
Sugar Sweetened Beverages ◽  
Market Prices ◽  
Demand And Supply ◽  
Equilibrium Prices ◽  
Sweetened Beverages ◽  
Demand Curves

Chapter 14 introduces the ideas of consumer and producer sovereignty and addresses the questions: Who determines the prices and quantities of food in our food system? Consumers? Producers? Both? The chapter demonstrates that market prices and quantities occur where consumers and producers come together in the market as represented by the market supply and demand curves. The chapter shows how changes in demand and supply will affect prices and quantities in the market. Using the demand and supply framework, the chapter analyzes the expected impact of a proposed tax on sugar sweetened beverages to decrease caloric intake. The chapter ends with a demonstration and discussion of the effects of multiple changes in demand or supply on the market equilibrium prices and quantities.

Estimation of market equilibrium values for apple attributes

2018 ◽  
Vol 10 (1) ◽  
pp. 135-151 ◽  
Author(s):  
Jong Woo Choi ◽  
Chengyan Yue ◽  
James Luby ◽  
Shuoli Zhao ◽  
Karina Gallardo ◽  
...  
Keyword(s):  
Consumer Preferences ◽  
Supply And Demand ◽  
Mixed Logit ◽  
Market Equilibrium ◽  
Breeding Programs ◽  
Content Type ◽  
Mixed Logit Models ◽  
Equilibrium Prices ◽  
Demand Curves ◽  
Social Surplus

Purpose Development of new cultivars requires extensive genetic knowledge, trained personnel, and significant financial resources, so it is crucial for breeders to focus on the attributes most preferred by the key supply chain stakeholders such as consumers and producers. The purpose of this paper is to identify which attributes generate the highest total revenue or social surplus, information that breeders can take into account as they allocate resources to focus on attributes in their breeding programs. Design/methodology/approach This study used mail-in and online surveys to collect consumer and producer choice experiment data, and then employed mixed logit models to analyze and simulate individual producer and consumer willingness to pay (WTP) for the apple attributes. Findings Based on the simulation results, this study derived the supply and demand curves and the market equilibrium prices and quantities for each apple attribute. Based on the WTP analysis for both consumer and producer, this paper found the highest equilibrium price and welfare for apples come from crispness, followed by flavor. Originality/value The authors propose a framework to estimate the equilibrium prices and quantities of a product based on the results of choice experiments. The framework can be easily adapted to understand any countries’ producer and consumer preferences for certain products.

scholarly journals Estimating Strawberry Attributes’ Market Equilibrium Values

HortScience ◽  
2017 ◽  
Vol 52 (5) ◽  
pp. 742-748
Author(s):  
Jong Woo Choi ◽  
Chengyan Yue ◽  
James Luby ◽  
Shuoli Zhao ◽  
Karina Gallardo ◽  
...  
Keyword(s):  
Demand Curve ◽  
Supply And Demand ◽  
Mixed Logit ◽  
Market Equilibrium ◽  
Mixed Logit Model ◽  
Logit Models ◽  
Total Revenue ◽  
Mixed Logit Models ◽  
Equilibrium Prices ◽  
Social Surplus

We conducted choice experiments with both strawberry producers and consumers. Consumer and producer willingness to pay (WTP) for the fruit attributes were estimated using mixed logit models. Through simulation using the mixed logit model results, we derived the market equilibrium prices, supply and demand curve, as well as quantities demanded and supplied for every fruit attribute. We found the highest equilibrium price was for strawberry internal color followed by flavor. Strawberry breeders can use the information when setting breeding targets, allocating resources appropriately during their breeding process and focusing on the improvement of attributes that produce the highest social surplus and total revenue.

scholarly journals Low Healthy Diet Self-Efficacy and Intentions Associated with High Sweet Snacks and Sugar Sweetened Beverages Consumption among African American Adolescents Recruited from Low-Income Neighborhoods in Baltimore

Nutrients ◽  
2021 ◽  
Vol 13 (12) ◽  
pp. 4516
Author(s):  
Isna A. Fajarini ◽  
Mika Matsuzaki ◽  
Cara F. Ruggiero ◽  
Caroline R. Wensel ◽  
Sangwon Chung ◽  
...  
Keyword(s):  
African American ◽  
Psychosocial Factors ◽  
Low Income ◽  
Self Efficacy ◽  
Weight Status ◽  
Caloric Intake ◽  
African American Adolescents ◽  
Sugar Sweetened Beverages ◽  
Cross Sectional ◽  
Sweetened Beverages

Psychosocial factors may influence consumption patterns of sweet snacks and sugar sweetened beverages (SSB), which are potential risk factors for obesity among African American (AA) adolescents. We used multivariable linear and logistic regression models to examine cross-sectional associations among psychosocial factors, sweet snacks and SSB consumption, and BMI z-scores in 437 AA adolescents aged 9–14 years living in low-income neighborhoods in Baltimore City, U.S.A. Mean caloric intake from sugar was 130.64 ± 88.37 kcal. Higher sweet snacks consumption was significantly associated with lower self-efficacy (adjusted Odds Ratio (aOR) = 0.81; 95% CI = 0.71 to 0.93) and lower food intentions scores (0.43; 0.30 to 0.61). Higher SSB consumption was associated with lower outcome expectancies (aOR = 0.98; 95% CI = 0.96–0.99), lower self-efficacy (0.98; 0.96 to 0.99), and lower food intentions (0.91; 0.87 to 0.95). No significant association was found between SSB and sweet snacks consumption and weight status. Psychosocial factors may play a role in sugar consumption behaviors among AA adolescents in low-income neighborhoods. Further studies are needed to improve our understanding of causal mechanisms of this association.

Impact of Qualitative Characteristics on Market Equilibrium: Simulation with Agent-Based Modeling

2017 ◽  
Vol 20 (02) ◽  
pp. 1750013
Author(s):  
Safae Badraoui ◽  
Khalid Bensaid ◽  
Ahmed Mouad El Haloui ◽  
Rajae Aboulaich
Keyword(s):  
Utility Function ◽  
Supply And Demand ◽  
Market Equilibrium ◽  
Ethical Aspect ◽  
Qualitative Characteristic ◽  
Individual Utility ◽  
Agent Based ◽  
Equilibrium Prices ◽  
Equilibrium Market ◽  
The Impact

This paper involves developing financial utility function that considers compliance to a certain qualitative characteristic and studies the impact on market equilibrium prices, should this criterion be Sharia compliance, fair-trade, environmental, social and governance principles or other ethical aspect. The goal is to show that individual utility can depend on other parameters than wealth and risk aversion, that therefore influence equilibrium market prices. This has been done by examining a possible utility function that takes into account individual sensitivity to the criterion and the intrinsic quality of compliance of this parameter. In order to prove the effectiveness of the proposed utility function, a simulation is made using agent-based approach with NetLogo platform. Upon examination of the impact of these parameters, it becomes clear that compliance to a qualitative characteristic would impact individual utility, supply and demand and result in equilibrium prices. This research highlights the importance of ethical arguments on individual decision making and how markets behave to this.

scholarly journals Spatial market equilibrium in the case of linear transportation costs

2020 ◽  
Vol 16 (4) ◽  
pp. 447-454
Author(s):  
Alexander Y. Krylatov ◽  
◽  
Yulia E. Lonyagina ◽  
Ruslan I. Golubev ◽  
◽  
...  
Keyword(s):  
Nonlinear Optimization ◽  
Supply And Demand ◽  
Market Price ◽  
Market Equilibrium ◽  
Transportation Costs ◽  
Unique Equilibrium ◽  
Optimization Program ◽  
Equilibrium Prices ◽  
Dual Variables

In this article, we study the spatial market equilibrium in the case of fixed demands and supply values, the requirement of equality in regard to overall supply and overall demand, and linear transportation costs. The problem is formulated as a nonlinear optimization program with dual variables reflecting supply and demand prices. It is shown that the unique equilibrium commodity assignment pattern is obtained explicitly via equilibrium prices. Moreover, it is proved that in order to obtain absolute values of equilibrium prices, it is necessary to establish a certain base market price. Therefore, once the base market price is given, then other prices are adjusted according to spatial market equilibrium.

4. Markets

2014 ◽  
pp. 50-66
Author(s):  
Avinash Dixit
Keyword(s):  
Supply And Demand ◽  
Market Equilibrium ◽  
Product Price ◽  
Demand And Supply ◽  
Equilibrium Shift ◽  
Social Surplus

‘Markets’ focuses on the supply-and-demand nature of markets. The supply–demand mechanism produces just the quantity that contributes positive social surplus, and no more. The outcome maximizes the total social surplus; it is economically efficient. If underlying conditions of demand and supply change, market equilibrium will shift. Whether the product price and the quantity produced increase or decrease depends on the type of shift of demand and supply that has occurred. One cause of equilibrium shift is the imposition of a tax. Cycles of booms and busts in housing and mining sectors are discussed along with price floors and ceilings.

scholarly journals The Scarcity Value of Treasury Collateral: Repo-Market Effects of Security-Specific Supply and Demand Factors

2018 ◽  
Vol 53 (5) ◽  
pp. 2103-2129 ◽  
Author(s):  
Stefania D’Amico ◽  
Roger Fan ◽  
Yuriy Kitsul
Keyword(s):  
Supply And Demand ◽  
Quantitative Easing ◽  
High Quality ◽  
Market Prices ◽  
Demand And Supply ◽  
Treasury Securities ◽  
Market Effects ◽  
Cash Market ◽  
Pass Through ◽  
The Impact

We quantify the scarcity value of Treasury collateral by estimating the impact of security-specific demand and supply factors on the specific collateral repurchase agreement (repo) rates of all outstanding U.S. Treasury securities. We find a positive and significant scarcity premium for on- and off-the-run Treasuries that persists for approximately 3 months and is larger in magnitude for shorter-term securities. This scarcity effect seems to pass through to Treasury cash market prices, providing additional evidence for the scarcity channel of quantitative easing (QE). On the contrary, the Federal Reserve’s reverse repo operations could help reduce the scarcity premium by alleviating potential shortages of high-quality collateral.

Solar Renewable Energy Credit Price Volatility and Investment Returns: Have Policies Stranded Capital Investment?

Commonwealth ◽  
2017 ◽  
Vol 19 (1) ◽  
Author(s):  
Somayeh Youssefi ◽  
Patrick L. Gurian
Keyword(s):  
Solar Energy ◽  
Capital Investment ◽  
Supply And Demand ◽  
Price Volatility ◽  
The United States ◽  
Investment Model ◽  
Capital Investments ◽  
Demand Model ◽  
Market Prices ◽  
Investment Returns

Pennsylvania is one of a number of U.S. states that provide incentives for the generation of electricity by solar energy through Solar Renewal Energy Credits (SRECs). This article develops a return on investment model for solar energy generation in the PJM (mid-­Atlantic) region of the United States. Model results indicate that SREC values of roughly $150 are needed for residential scale systems to break even over a 25-­year project period at 3% interest. Market prices for SRECs in Pennsylvania have been well below this range from late 2011 through the first half of 2016, indicating that previous capital investments in solar generation have been stranded as a result of steep declines in the value of SRECs. A simple conceptual supply and demand model is developed to explain the sharp decline in market prices for SRECs. Also discussed is a possible policy remedy that would add unsold SRECs in a given year to the SREC quota for the subsequent year.

Learning from the Mexican Experience with Taxes on Sugar-Sweetened Beverages and Energy-Dense Foods of Low Nutritional Value

10.1596/24701 ◽  
2016 ◽  
Author(s):  
Maria Eugenia Bonilla-Chacin ◽  
Roberto Iglesias ◽  
Agustina Suaya ◽  
Claudia Trezza ◽  
Claudia Macías
Keyword(s):  
Nutritional Value ◽  
Sugar Sweetened Beverages ◽  
Sweetened Beverages
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