Suppose harvest season is upon us, and in your local market area supply of wheat is 12,000 tonnes. Demand during harvest
Posted: Wed Apr 27, 2022 1:05 pm
Suppose harvest season is upon us, and in your local market area
supply of wheat is 12,000 tonnes. Demand during harvest period (and
the six months afterwards) is given by D1 = 14,000 – 20*P1, where
D1 is demand for wheat in this first period, and P1 is the price of
wheat in the first period.
Demand for wheat in the second period is given by D2 = 16,000 –
20*P2, where D2 is demand for wheat in this second period, and P2
is the price of wheat in the second period. Storage costs between
the two periods equals $200 per tonne.
supply of wheat is 12,000 tonnes. Demand during harvest period (and
the six months afterwards) is given by D1 = 14,000 – 20*P1, where
D1 is demand for wheat in this first period, and P1 is the price of
wheat in the first period.
Demand for wheat in the second period is given by D2 = 16,000 –
20*P2, where D2 is demand for wheat in this second period, and P2
is the price of wheat in the second period. Storage costs between
the two periods equals $200 per tonne.