EFFECT OF WEATHER MODIFICATION ON SUPPLY AND TOTAL REVENUE OF A REGION

Cloud seeding to increase precipitation is a supply increasing technology regulated by a State agency. The increase in production is limited to the farmers living in the region affected but the price effects are distributed to all farmers in the market. Total revenue to farmers in the region may increase because for them the percent in production may be greater than the percent decrease in price. Total in revenue to farmers in a region will increase with an increase in the supply of a commodity with an inelastic demand if their share of the total market is less than the coefficient of elasticity of demand.


Subject(s):
Issue Date:
1981-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/32077
Published in:
Western Journal of Agricultural Economics, Volume 06, Number 1
Page range:
57-68
Total Pages:
12




 Record created 2017-04-01, last modified 2017-08-24

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