Abstract

MOST agricultural demand analyses include, as separate variables, factors that cause the demand curve of the commodity to shift [6]. This type of measurement, together with an assumed predetermined supply and thus an almost vertical supply curve, yields the economist somewhat of an average demand curve, but its usefulness in forecasting is significant. It was pointed out by Working that the true demand and supply curves need not be constructed if the analyst only wants a method that will help him forecast prices [10, pp. 212-235]. Even though many economists emphasize the structural reliability of their models, the unwritten but real ultimate goal is generally to forecast or predict the future. This paper is offered, therefore, to stimulate some new concepts dealing with price prediction or price analysis.

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