coefficients estimated by Brandow.-^ Area demand functions for both 

 fluid and manufacturing milk were developed by multiplying per capita 

 demand functions in each area by population within the area. The de- 

 mand functions reflect the price-quantity relation given the 1965 income 

 pattern, price of substitutes, and population size and composition in 

 each area. -^ 



Regional Demand Function Under Competitive Conditions 



A regional demand function for fluid milk was determined for the 

 Northeast States by summation of the 20 individual area demand 

 functions. The regional demand function for manufactured milk was 

 obtained by following the same procedures. A combined regional 

 demand for manufacturing and fluid milk was developed by horizontal 



100 200 300 



Million Cwt. Milk 



400 



500 



Figure 5. Linear Demand Functions for Fluid Milk, Manufactured Milk 

 and Combined Demand, Northeast, 1965 



23 Brandow, G. E.. Interrelation Among the Demand for Farm Products, Impli- 

 cation for Control of Market Supplies, Pa. Agr. Expt. Sta. Bui. 680, 1961. 



-^ Dhillon, P. S., Projected Estimates of Demand for Fluid and Manufacturing 

 Milk in the Northeastern United States, A. E. and R. S., Department of Agri- 

 cultural Economics & Rural Sociology, The Pennsylvania State University, 1968. 



35 



