Demand and supply elasticity of agricultural products according to price

• Published in: Аграрная экономика (Belarus). Agrarian Economics no. 10
• Main Author: Cheplyanskij, A.,Belarus State Academy of Agriculture, Gorki (Belarus)
• Format: Journal Article
• Language: Russian
• Published: 2006
• Subjects: ANALISIS ECONOMICO; ANALYSE ECONOMIQUE; BALANCE COMMERCIALE; BALANCE OF TRADE; BALANZA COMERCIAL; BELARUS; DEFICIT; DEMAND; DEMANDA; DEMANDE; DESARROLLO ECONOMICO; DEVELOPPEMENT ECONOMIQUE; ECONOMIC ANALYSIS; ECONOMIC DEVELOPMENT; EXCEDENT; EXCEDENTES; http://www.fao.org/aos/agrovoc#c_2171; http://www.fao.org/aos/agrovoc#c_2469; http://www.fao.org/aos/agrovoc#c_2471; http://www.fao.org/aos/agrovoc#c_28764; http://www.fao.org/aos/agrovoc#c_33237; http://www.fao.org/aos/agrovoc#c_6178; http://www.fao.org/aos/agrovoc#c_6179; http://www.fao.org/aos/agrovoc#c_7523; http://www.fao.org/aos/agrovoc#c_7524; http://www.fao.org/aos/agrovoc#c_7535; http://www.fao.org/aos/agrovoc#c_790; OFERTA; OFERTA Y DEMANDA; OFFRE; OFFRE ET DEMANDE; PENURIE; POLITICA DE PRECIOS; POLITIQUE DES PRIX; PRECIOS; PRICE POLICIES; PRICES; PRIX; SHORTAGES; SUPPLY; SUPPLY BALANCE; SURPLUSES
• ISSN: 1818-9806

Research results of studies of demand and supply elasticity of prices for the main types of agricultural products (potato, milk, cereals and legumes, pork and beef) were presented. Dependence of demand and supply for agricultural products on price was showed. The low level of agricultural products elasticity was proved by the calculation of the coefficients of demand and supply elasticity. Over 2000-2005 the average demand elasticity for milk was - 0,11, pork and beef elasticity was - 0,13 and - 0,18 accordingly and potato elasticity was -0,23 that was caused by several factors: quantity of substitute products; variety of usage possibilities; products importance for the consumers; incomings ratio. The average supply elasticity for milk was - 0,12, pork and beef elasticity was - 0,17 and - 0,22 accordingly and potato elasticity was - 0,28 that was caused by the peculiar properties of production processes; possibility of products storage; amount of production costs, etc. Research results made it possible to make the following conclusions: price proved to be the main factor determining the amount of demand and supply for agricultural products in market conditions with the exception of cases of state interference into the sphere of agricultural production; lag of demand behind supply for one year proved to be the distinct feature in the process of agricultural products market clearance; demand and supply indices for agricultural products were low-flexible and indices of flexibility coefficients were influenced by several specific for supply and demand factors. Realized calculations showed that milk had the highest indices of price flexibility