Tom Gomez 

 October 6, 1986 

 Page -4- 



adoption in New York (due to being developed at Cornell) and then 

 spreading. The adoption process can be traced through a series of 

 graphs . 



STEP 1: New York producers have adopted, but not the rest of the 

 producers. 



FIGURE 3a 



New York 

 Price 



Supply 1 



Supply 2 

 Demand 



Quantity /Time 



Producer surplus has increased along with quantity produced in 

 New York. 



STEP 2: All producers adopt. 



FIGURE 3b 



Market 

 Price 



Qi Q2 



Quantity/Time 



