Access the Short-Run Impact of Releasing Food Stocks tool here.

Question

What is the change in short-run prices when food supply is increased?

Data Requirements

  • Proportional increase in supply over time
  • Price elasticity for demand and supply of the commodity
    OR
  • Quantity of food released
  • Short-run supply of food
  • Price elasticity for demand and supply of the commodity

Variables
Δ Pd / Pd proportional change in the domestic price of the commodity resulting from the increase in supply
(Δ Q/Q) proportional increase in supply
εD price elasticity of demand for the commodity
εS price elasticity of supply for the commodity
R quantity released from reserve
S short-run supply

Output

The proportional change in price resulting from an increase in supply of a commodity.

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