SOUTHERN JOURNAL OF AGRICULTURAL ECONOMICS DECEMBER, 1974 DEMAND SUBSTITUTION BETWEEN NATURAL, FLAVORED, AND SYNTHETIC CITRUS JUICES

Formulation of marketing policies often is based regression results from their models show that on the knowledge of various demand elasticities for numerous significant cross-price coefficients have a the commodities under consideration. One important negative sign, implying a complementary relationship aspect of demand analysis is to inquire qualitatively between orange juice products. The inference about or quantitatively into the extent of demand demand substitution based on their regression substitution between commodities. The Florida citrus equations is, therefore, unconvincing. The present growers and processors have been much concerned model has imposed a constraint on the cross-price about the impact of flavored and synthetic citrus coefficients such that a complementary relation is not product substitutes for which the market, in terms of permitted. Furthermore, the present model includes absolute sales, has doubled in less than one decade both processed orange and grapefruit products, and (Table 1). thus, the scope of possible substitution among citrus The entry of a new product often takes place products is much extended. during the time when a dramatic leftward shift in A DEMAND MODEL supply occurs. A most recent example is the introduction of textured vegetable protein in ground The statistical inference in this study relies upo