Figure 4. Estimated Farm Milk Prices, 20 Areas of the Northeast, 1965 



10, Northern New York; and Area 13, the New York Plateau. The 

 greatest response in milk output to a change in price was indicated for 

 Areas 3, 6, 12, 19, and 20 (Massachusetts and Connecticut, Western New 

 York State, Southeastern Pennsylvania, and Delaware and Maryland) . 

 In these areas, milk output was up to four times more responsive to 

 price than in those areas with the fewest alternatives. 



Supply functions and elasticities are affected by time considerations. 

 Implicit in the models is sufficient time for cropping systems to be 

 changed and additional capital invested in barns and silos. Explicit in 

 the methodology used, all farms are assumed to make the optimal 

 adjustments to their alternatives. These supply functions represent 

 potential supplies of milk forthcoming from farms based on the 1960 

 and 1965 resource bases. 



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