Hilgardia
Hilgardia
Hilgardia
University of California
Hilgardia

Factors affecting the price of watermelons at Los Angeles

Author

Emil Rauchenstein

Author Affiliations

Emil Rauchenstein was Associate in Agricultural Economics.

Publication Information

Hilgardia 3(12):305-323. DOI:10.3733/hilg.v03n12p305. June 1928.

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Abstract

Abstract does not appear. First page follows.

The Problem

As the quantity of any commodity put on the market increases, the value which the consumer places on each unit declines, and hence he will pay less for each unit. It is the purpose of this study to determine for a specific commodity at a specific market (watermelons on the Los Angeles market) how much prices have actually changed during the past six years with the various changes in the supply, and to measure the effect of all other factors on which data are available and which affect the price.

It is a matter of general experience that variations in the supply of one commodity may cause large proportional changes in its price, whereas similar variations in the supply of another commodity may cause only small proportional changes in its price. For example, an increase of 20 per cent in the supply of potatoes would cause a large relative decrease in their price.(8) A similar increase in the supply of apples would cause a much smaller proportional decrease in their price.(5) It is possible also that the demand for a commodity may change over a period of time. The price of potatoes seems to change more now for a given change in the supply than it did twenty years ago.(1) Changes of this kind however, usually come about gradually and the trend can be noted before a marked change occurs.

Literature Cited

[1] Division of Agr. Econ. Minnesota Agr. Ext. Div. Potato Letter. 1926. 3(2):1 (Dec. 6)

[2] Haas G. C., Mordecai Ezekiel. Factors affecting the price of hogs. U. S. Dept. of Agr. Dept. Bul. 1926. 1440:1-68.

[3] Hedden W. P. Studies of market supply, price, and sales as a basis for control of distribution of perishables. Jour. Farm Econ. 1926. 8:213-226. DOI: 10.2307/1229873 [CrossRef]

[4] Killough Hugh B. What makes the price of oats. U. S. Dept. of Agr. Dept. Bul. 1925. 1351:1-39.

[5] Rauchenstein Emil. Economic aspects of the apple industry. California Agr. Exp. Sta. Bul. 1927. 445:1-76.

[6] Rauchenstein Emil. Economic aspects of the watermelon industry. California Agr. Exp. Sta. Bul. 1928. 449:1-26.

[7] Wallace H. A., Snedecor Geo. W. Correlation and machine calculation. 1925. 23Iowa State College of Agriculture and Mechanic Arts, Official Publication. p. 1-47.

[8] Working Holbrook. Factors affecting the price of Minnesota potatoes. Minnesota Agr. Exp. Sta. Technical Bul. 1925. 29:1-40.

Rauchenstein E. 1928. Factors affecting the price of watermelons at Los Angeles. Hilgardia 3(12):305-323. DOI:10.3733/hilg.v03n12p305
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