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Title: Competition between Florida and California celery in the Chicago market
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Title: Competition between Florida and California celery in the Chicago market
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Publisher: University of Florida Agricultural Experiment Station
Publication Date: 1961
Copyright Date: 1961
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Full Text





HISTORIC NOTE



The publications in this collection do
not reflect current scientific knowledge
or recommendations. These texts
represent the historic publishing
record of the Institute for Food and
Agricultural Sciences and should be
used only to trace the historic work of
the Institute and its staff. Current IFAS
research may be found on the
Electronic Data Information Source
(EDIS)

site maintained by the Florida
Cooperative Extension Service.






Copyright 2005, Board of Trustees, University
of Florida







Bulletin 636 November 1961




UNIVERSITY OF FLORIDA
AGRICULTURAL EXPERIMENT STATIONS
J. R. BECKENBACH, Director
GAINESVILLE, FLORIDA










COMPETITION BETWEEN

FLORIDA AND CALIFORNIA CELERY

IN THE CHICAGO MARKET


MARSHALL R. GODWIN
and
BILLIE S. LLOYD













Single copies free to Florida residents upon request to
AGRICULTURAL EXPERIMENT STATION
GAINESVILLE, FLORIDA














CONTENTS

Page

SUM MARY .... .... -....... .. ............................................... 3

INTRODUCTION .-.......---.--.... ...- .......-- .--- --. -.......... ......--------- .. 5

METHOD OF STUDY -.....-----..... ---... -- -------.........................-.......... 5

COMPARATIVE SALES OF CELERY ......- ----.... .. .... ---------. .................. 8

CHARACTERISTICS OF THE DEMAND FOR CELERY ......---............ ......--......... 10

Effect of Price Changes upon Purchases ..-......------.. .-...- ....---.--- ... 13

Effect of Price Changes for One Product on Sales of the Other ........ 16

THE ECONOMIC INTERACTION BETWEEN THE Two PRODUCTS ....--....--.......-- 17

Effect of Various Supply Situations on Florida Celery Prices .......... 19

Effect of Various Supply Situations on California Celery Prices ...-.. 24

A Comparison of the Price Behavior of the Two Products ................ 27

APPENDIX .---...---.......... ......- ----.............--...........-........- 29








A more simplified presentation of the salient features of the
research which serves as the basis for this publication is avail-
able in Agricultural Economics Report 59-6 entitled "Competi-
tors in the Celery Market: California and Florida."










SUMMARY
This report deals with the results of research designed to
determine the nature of the competitive relationship between
Florida and California celery. The research procedure entailed
the creation of retailing situations in which the consumer was
afforded an opportunity to choose between the two products
under conditions of varying relative prices. The study was con-
ducted in nine large supermarkets in the Chicago metropolitan
area during May and June 1958.
The results indicate that the preference of consumers for
California celery is not strong enough to support a very large
price premium for this product. At a price differential of 2
cents per stalk in favor of California celery, 57 percent of the
total celery sold consisted of Florida celery. As the price differ-
ence between the two products was further widened, the relative
sales of California celery consistently diminished. At a differ-
ence of 18 cents per stalk, four-fifths of the total celery pur-
chased consisted of the Florida product. Customers reacted to
price differences between the two products in about the same
fashion, regardless of the price level at which celery was sold.
The price elasticity of the demand for both products was
found to be greater than unity. However, the demand for Cali-
fornia celery was somewhat more elastic than was the demand
for Florida celery. For Florida celery a price elasticity coeffi-
cient of 1.02 was obtained, while the coefficient for California
celery was 2.55.
Consumers quite readily make substitutions between the
two products. However, they do not regard them as equally
good substitutes. Consumers will more readily substitute Cali-
fornia celery for Florida celery than they will substitute Flor-
ida celery for California celery. Considering California celery
as a substitute for Florida celery, a cross-elasticity coefficient
of 0.66 was obtained. The cross-elasticity coefficient for Flor-
ida celery as a substitute for the California product was 0.59.
Because customers will quite readily shift back and forth
between Florida and California celery in response to changing
relative price conditions, their prices are linked together by
economic forces which operate in the market. The basic elas-
ticity and cross-elasticity coefficients obtained in the analysis
were employed to examine the nature of this interrelationship.
Estimates of the expected price behavior of the two products
under various assumed supply conditions were derived.







4 Florida Agricultural Experiment Stations

Based on these estimates, California supply changes can be
expected to have less effect on Florida celery prices than Flor-
ida supply changes of comparable magnitude will have on the
price of California celery. Under conditions of decreasing sup-
ply in both producing areas, Florida prices can be expected to
rise with greater rapidity than California prices. Florida cel-
ery prices can also be expected to fall with greater rapidity
than California prices under conditions of increasing supply
in both areas.
The price declines for both Florida and California celery
that are associated with specific relative supply increases are
somewhat smaller than the price increases that may be expected
to accompany decreases in supply of corresponding magnitude
in the two areas.









COMPETITION BETWEEN
FLORIDA AND CALIFORNIA CELERY
IN THE CHICAGO MARKET

MARSHALL R. GODWIN and BILLIE S. LLOYD

INTRODUCTION
Florida and California produce practically all of the domestic
supply of celery during the winter and spring seasons. Over
the months in which the Florida celery crop is harvested and
marketed, the volume of California celery moving into the
channels of trade generally equals, and occasionally exceeds,
the quantity shipped from Florida. Since the two products
may be used for essentially identical purposes by the consumer,
they compete directly in the consuming centers of the eastern
United States.
Actions and events within the structure of the terminal
market suggest that California celery generally has enjoyed
an advantage over Florida celery in the market place. For
reasons which have been difficult to identify specifically or to
measure objectively, the wholesale trade has demonstrated a
preference for the California product. In its most tangible form,
this preference has been manifested by generally higher whole-
sale prices for celery grown in California.
In recent years Florida growers and shippers have become
increasingly interested in improving their competitive position.
Effective actions to this end should be based on a thorough under-
standing of the nature of the problem involved. The purpose of
this study was to provide a part of the information required for
an appraisal of the situation confronting the Florida celery in-
dustry. Specifically, it consisted of a quantitative examination
of the competitive relationship between Florida and California
celery from the standpoint of the consumer.

METHOD OF STUDY
The fundamental role of firms operating in the terminal
market is the acquisition of fruit and vegetable supplies in a
fashion that reflects the desires of the ultimate consumer.
Hence, the apparent preference of terminal market agencies for
California celery would suggest a similar preference on the part
of the consumer. The activities of the terminal market agencies,







6 Florida Agricultural Experiment Stations

however, are something less than a full or completely accurate
reflection of consumer preference. The actions and opinions of
the management of these agencies, of necessity, are colored by
the problems peculiar to the environment in which they operate.
For this reason, it was decided to approach the problem of estab-
lishing the competitive relationship between the two products
by dealing directly with the consumer.
To measure the competitive relationship between the two
products, retailing situations were created in which the home-
maker could readily compare Florida and California celery in the
process of making a buying decision. Customers were afforded
an opportunity to choose from either of two displays containing
celery representative of the types produced in Florida and Cali-
fornia. Because of space limitations, the clear-cut exercise of
such choice by the customer is seldom possible except in the very
largest retail food store operations.
The fact that consumers may prefer celery from one pro-
ducing area over that grown in another is meaningful only
when this preference is established within the context of price.
Hence, the study procedure entailed affording the customer not
only an opportunity to choose between the two products, but
also an opportunity to make her selection under conditions of
varying relative prices. A series of price differentials was deli-
berately introduced between the two products. These differen-
tials were designed to measure the degree to which customers
preferred celery from one area over that grown in the other.
During the course of the study, nine price combinations were
tested (Table 1). These were designed to measure the reaction
of customers to small, moderate and rather large price differ-
ences between celery grown in Florida and that grown in Cali-
fornia. They were also designed to accommodate the possibility
that customer reaction to a given absolute price differential
might be dependent upon the general level at which celery was
being sold. The nine price combinations resolved into a 3 x 3
factorial arrangement in which three price levels for each type
of celery were tested in combination with three different price
levels for the other type. The basic data required for the study
were generated by employing a 9 x 9 latin square experimental
design.'

'A schematic representation of the experimental design, and the basic
data obtained through the use of the research technique are given in
Tables 1, 2, and 3 of the Appendix.








Competition Between Florida and California Celery 7

TABLE 1.-PRICE COMBINATIONS EMPLOYED IN DETERMINING THE NATURE
OF THE COMPETITIVE RELATIONSHIP BETWEEN FLORIDA AND
CALIFORNIA CELERY.

Treatment Florida California
Price Price
-- cents per stalk--
1 -- -- -- -- -- .-.-- .- .--- ..2 9 3 9
2 - - - - - - - -- -2 5 3 9
1 ...................... ... ... . ... 291 39
2 ........................... ........... 259 39
3 ....-- -----......... .. .... .... .. 2 1 39
4 -.- -- -- - - ---.. .. - -. 29 35
5 -. -....-.- ... .. - 25 35
6 ...........-............. .. .....-.. .. ... 21 35
7 -..--..... -...- .............. .... ..... 29 31
8 -.................... .... .. .. ... . 25 31
9 .... .. ........ ... .. . ... ... 21 31


In all of the price combinations tested, Florida celery was
sold at prices lower than the price of the California product.
Price differences between the two ranged from 2 to 18 cents
per stalk. Florida celery was priced at various levels below Cali-
fornia celery on the assumptions that the competitive advan-
tage lay with the California product and that the fundamental
problem was to measure the extent of this advantage.
Retailing tests in which customers were afforded a choice
between Florida and California celery under varying price con-
ditions were conducted in the Chicago metropolitan area during
May and June 1958. The tests were conducted in nine large
supermarkets of a national food retailing organization over 41/
weeks. Three stores served a predominantly high-income clien-
tele, three were located in medium-income areas and three were
in low-income sections of the metropolitan area.
The California celery used in the test situations was the Utah
52-70 variety. The Florida celery was the 259-19 variety typical
of the summer pascal types produced in Florida during the
spring season. Throughout the study, only size 21/2 celery
from both producing areas was used. This size approximated
the modal group in the total range of celery sizes shipped from
Florida and California during the spring under normal produc-
tion conditions.
Only celery meeting the requirements of the U. S. No. 1
grade was employed in the tests. Considerable effort was de-
voted to the maintenance of the quality level in all stores at
all times. However, equal care was exercised to assure that the







8 Florida Agricultural Experiment Stations

test displays did not reflect a quality level higher than that cus-
tomarily found in U. S. No. 1 celery. Also, displays of equal
size were maintained at all times. They were not identified as
to the area in which the celery was grown.
The objective of the foregoing procedure was to create test
situations where the only differences between the two displays
of celery were (a) the physical characteristics of the celery and
(b) the price at which each product was sold. In all other re-
spects, the two displays were comparable. These conditions per-
mit a rather precise measurement of the extent of the compe-
titive relationship between the two products.

COMPARATIVE SALES OF CELERY
The preference of consumers for California celery over Flor-
ida celery apparently is of somewhat less magnitude than the
attitudes and actions of handlers at the terminal market level
in the distribution system would suggest. It would appear that
the preference for California celery is not strong enough to sup-
port a very large price differential between the two products.
Sales of California celery failed to equal the sales of Flor-
ida celery for any set of test prices (Fig. 1). In one of the nine
price combinations, the highest Florida price of 29 cents was
matched against the lowest test price for California celery of
31 cents per stalk. In this instance, the difference in price be-
tween the two products was only 2 cents, or a retail value of
60 cents per crate. Under these conditions Florida celery ac-
counted for 57 percent of the total sales and the California prod-
uct for 43 percent. This suggests that, in the judgment of
more than half of the customers, the value difference between
the two was less than the smallest price differential employed.
As the price difference between the two products widened,
Florida celery accounted for a correspondingly larger share of
the total sales. The maximum price difference between the two
products was attained when California celery was sold at 39
cents per stalk and Florida celery at 21 cents. At this maximum
difference of 18 cents per stalk, 83 percent of the celery which
customers bought was from Florida and 17 percent was from
California.
Customers reacted to a price difference between the two
products in about the same fashion regardless of the level of
price at which celery was sold. With one notable exception,
an absolute price difference between the two resulted in com-








Competition Between Florida and California Celery 9

parative sales that were about the same when the prices of
both were high as when the prices of both were low. In two
of the test situations the difference in price was 6 cents per
stalk. This difference existed when California celery was sold
at 35 and 31 cents per stalk with Florida prices 6 cents lower
in each instance. In both cases slightly less than two-thirds of
the total celery purchased was from the Florida displays.

Percent of Total Sales
California
0 10 20 30 40 50 60 70 80 90 100
31 29





| ---------------
31 25

31 21





S35 25 n
c' 0




S35 21



39 29


t39 25

39' 21
100 90 80 70 60 50 40 30 20 10 0
Percent of Total Sales
Florida
Figure 1.-Comparative sales of Florida and California celery at various
prices.

In three of the pricing arrangements, Florida celery was
sold at 10 cents per stalk less than California celery. At the
highest test prices of 29 and 39 cents per stalk for each of the
two products, California celery accounted for 24 percent of the
total purchases and Florida celery for 76 percent. However, at
lower levels of 35 and 31 cents for California celery and cor-







10 Florida Agricultural Experiment Stations

responding prices of 25 and 21 cents for Florida celery, about
30 percent of the celery purchased was from the California dis-
plays and 70 percent from the Florida displays. Under two
of the pricing arrangements the difference was 14 cents per
stalk. When California celery was priced at 39 and 35 cents,
corresponding prices for Florida celery were 25 and 21 cents. In
both of these situations about 78 percent of the total sales con-
sisted of Florida celery and 22 percent of California celery.
Since Florida celery consistently outsold California celery
under all price conditions and since the sales difference between
the two products increased rapidly as the Florida price was low-
ered relative to the California price, it appears that California
celery does not have the capacity to command a substantial pre-
mium in the market without a very considerable loss in sales
volume. Perhaps at price differentials less than those employed
in the study, more than half of the sales of celery would have
consisted of the California product. However, pricing arrange-
ments involving smaller differentials between the two products
did not appear feasible in light of both the handlers' attitudes
prevailing at the time the study was initiated and the historical
price relationships between the two products.
Certain consumers apparently prefer California celery and
are willing to pay substantial premiums in order to obtain it. The
fact that California celery accounted for an appreciable share
of the total sales when marketed at prices substantially above
Florida celery indicates that the California industry does have a
limited market in which it is strongly established. Encroachment
of Florida upon that share of the market made up of customers
willing to pay high price premiums for California celery would
probably be a most difficult task for the Florida celery industry.

CHARACTERISTICS OF THE DEMAND FOR CELERY
That people respond to an upward price movement for a
commodity by adjusting their purchases downward and to down-
ward price movements by increasing their purchase rates is
a widely understood economic relationship. However, the fact
that purchases vary inversely with the price at which a prod-
uct is sold falls far short of telling the entire story. If cus-
tomers are quite reluctant to forego the use of an item, rather
large price increases may be necessary in order to accomplish








Competition Between Florida and California Celery 11

an appreciable change in their purchase rates. On the other
hand they might substantially reduce their purchase rates as
a result of a relatively small price increase. Clearly the same
alternatives exist with regard to price decreases-they may
result in large or small increases in purchases. It is the manner in
which customers respond to a price change that is of funda-
mental importance to producers and marketing firms. This is
particularly true in this case. The way in which customers
respond to price changes for each product may cause the market
conditions confronting Florida and California to differ mater-
ially.
Aside from income considerations, the character of the demand
for the two types of celery may be summarized by two major
price effects. The first of these consists of the effect that a
price change for either of the two types of celery will have on
its individual sales. The direct purchase response of customers
to a given price change is referred to as the price elasticity of
demand. The second consists of the effects that a price change
for one type of celery will have upon the sales of the other prod-
uct. This secondary effect of a price change for one type of
celery upon the sales of the other type is referred to as the cross-
elasticity of demand with respect to price.
Hence, a change in the price of either Florida or California
celery brings about two types of economic responses on the part
of consumers. They react directly to the price change by alter-
ing their purchase patterns for that type of celery which under-
went a price change, and, if the two products are to any extent
interchangeable in use, they also alter their purchase patterns
for the other type of celery, even though its price remains the
same. Together, these two economic responses reflect the
characteristics of the demand for each type of celery.
The analytical approach employed in the study reckoned both
with how a price change for one of the two products affected
the sales of that product and with how such price changes might
in turn affect the demand for the other type of celery. In con-
formance with a priori reasoning leading to the choice of the ex-
perimental design and the data generating technique, the statis-
tical model employed was:








12 Florida Agricultural Experiment Stations

Y'-ij = + s + u + p p-ij + Bp' + e'
i 10 j 1-IJ 12 2-1j l-ij

2-j 20 + s! + u! + B2P-ij 22 2-ij + 2-ij
where,

Y' .. = Log of quantity of Florida celery
purchased

Y2'-i = Log of quantity of California celery
purchased

Pi0' 120 = Log of regression constants

s! = Log of store i effect
I
u! = Log of period j effect
J
p' ij = Log of price of Florida celery

p2-j' = Log of price of California celery
fIk = Regression coefficients (k = 1, 2)

l2k = Regression coefficients (k = 1, 2)

e' .., e'_.. = Random disturbances
1-ij 2-ij
The computational results of using this model yielded
the following estimating equations:

q\ = 1.14475 1.01569pi + 0.58709p2

q2 = 3.20911 + 0.65947pI 2.55301pO

where,

qj = Log of quantity of Florida celery purchased

q7 = Log of quantity of California celery purchased

p{ = Log of price of Florida celery

p = Log of price of California celery









Competition Between Florida and California Celery 13

The coefficients provided by these two estimating equations
summarize how a price change for one type of celery affected
the sales of that type (the price elasticity of demand), and the
influence that a change in the price of one type of celery had
upon the sales of the other type (the cross-elasticity of demand).2
Effect of Price Changes upon Purchases.-Customers re-
sponded to price changes for Florida celery by adjusting their
purchases upward or downward by an amount slightly larger
than proportionate to the price change. More specifically, a 1
percent change in the price of Florida celery brought about an
inverse change of 1.02 percent in the quantity which customers
purchased. In other words, increasing the price by 1 percent
at any point within the range of prices tested tended to reduce
purchase rates by 1.02 percent. Conversely, lowering Florida
celery prices by 1 percent resulted in an increase in purchase
rates of 1.02 percent. The relationship between price and pur-
chase rates for Florida celery is shown graphically in Figure 2.
Since customers tended to adjust their purchases upward
or downward by an amount almost equally proportionate to a
price change, they were inclined to spend essentially the same
amount for Florida celery regardless of the price at which it
was sold. Under these conditions short supplies would tend
to result in price increases about equal in a percentage sense
to the amount which supplies were below normal. On the other
hand long supply conditions could be corrected only by price
"* From the estimating equations, estimates of the price and cross-elasti-
cities of demand for each of the two products are:
Price elasticity of demand for a log q, ql/ql
Florida celery -alog P- =-pl = 'i = -1.01569
a log p1 dp /p 11
Cross-elasticity of demand for
Florida celery with respect a log q1 ;o ql/q1
to California price = log P2 ap /p2 12 = 0.58709
Price elasticity of demand for log q2 q2/q2
California Celery = g 2 = 2 = -2.55301
alog p2 P2/P2 722= -2.55301
Cross-elasticity of demand for
California celery with respect alog q2 aq2/q2
to Florida price og p -- = -21 = +0.65947
alog pi 3 ap/pi 21
where,
q4 = Quantity of Florida celery purchased
q2 = Quantity of California celery purchased
P1 = Price of Florida celery
P2 = Price of California celery









14 Florida Agricultural Experiment Stations


Percent Change
in Price



+2.


+1


0-


-1


-2



-4 -3 -2 -1 0 +1 +2 +3 +4
Percent Change in Quantity

Figure 2.-The effect of a price change upon retail purchases of Flor-
ida celery.



Percent Change
in Price



+2


+1


0-


-1


-2-



-4 -3 -2 -1 0 +1 +2 +3 +4
Percent Change in Quantity
Figure 3.-The effect of a price change upon retail purchases of Cali-
fornia celery.








Competition Between Florida and California Celery 15

reductions approximately equal in percentage terms to the
amount by which the supply was larger than normal.
Customers were somewhat more sensitive to changes in the
price of California celery than they were to price changes for
Florida celery. Within the range of prices at which the Cali-
fornia product was sold, a 1 percent price change resulted in
an inverse change of 2.55 percent in purchase rates (Figure 3).
As California celery prices were increased, customers adjusted
their purchases downward by 2.55 percent for each 1 percent
that the price was raised. Likewise, purchase rates increased by
2.55 percent in response to a 1 percent price decline.
The responsiveness of customers to price changes for Cali-
fornia celery implies that they are willing to spend varying
amounts for this product. As prices are reduced, purchases will
tend to increase by a larger than proportionate amount. Con-
sequently, the amount which customers will spend in total will
rise as the price is lowered. However, price increases will result
in larger than proportionate declines in customer purchase rates
for California celery, and also will result in smaller and smaller
total expenditures for this product as the price continues to rise.
The existence of a greater sensitivity on the part of custom-
ers to price changes for California celery than for Florida cel-
ery gives an advantage to the California product under condi-
tions where a particular market or the entire distribution sys-
tem may be temporarily over-supplied. Customers are about
21/ times as responsive to a price change for the California
product as they are to a price change for Florida celery. Hence,
the price reduction required to clear the market under any given
condition of oversupply would be somewhat less for the Cali-
fornia industry than would be the case for Florida in an anal-
ogous situation.
For example, a supply condition 10 percent above normal for
California celery could be moved by reducing the price at retail
by about 4 percent. A 10 percent oversupply in the case of
Florida celery would entail price reductions at retail of about
10 percent.3 While the study results may have shortcomings
3 The approximate amount by which celery prices for each area would
have to decline in order to clear the market of a supply 10 percent above
normal can be determined by dividing the amount of the supply increase
by the percentage change in customer purchase rates associated with a 1
percent change in supply. For California the price reduction is computed
as
2.55 or 3.92 percent, and for Florida the result would be 1 or 9.80 percent.
It is important for the reader to note that this is illustrative of the1.0
It is important for the reader to note that this is illustrative of the







16 Florida Agricultural Experiment Stations

with respect to the precision with which they describe the nature
of the effects of a price change upon purchases of the two prod-
ucts, they are sufficient to suggest that customers are more
responsive to price changes for California celery than for Flor-
ida celery. Under these conditions California would tend to
have an advantage under conditions of oversupply. The extent
of this advantage will depend upon precisely how much more
responsive consumers are to price changes for California celery
than for Florida celery.
Effect of Price Changes for One Product on Sales of the
Other.-The quantitative purchase response to changing price
conditions for Florida and California celery is one condition
which operates to establish the relationship for these two prod-
ucts. Of equal or greater importance is the extent to which cus-
tomers are willing to substitute each product for the other. For
each of the two types of celery, price changes brought about
both changes in the volume of celery which customers pur-
chased and shifts in customer purchases from one type of celery
to the other. This tendency of customers to shift their pur-
chases back and forth between the two products under changing
relative price conditions indicates the extent to which the two
products are substitutes in a consumption sense.
Changes in the price at which Florida celery was sold had
a material effect upon the sales volume of California celery. As
the price of Florida celery increased, customers demonstrated a
distinct inclination to decrease their purchases of Florida celery
and to increase their purchases of California celery. Conversely,
decreasing the price of Florida celery resulted in higher sales
of this product, and tended to reduce the amount of California
celery that customers purchased. The study results reveal that
a change of 1 percent in the Florida price was associated with a
0.66 percent change in the sales of California celery. Increasing
the Florida price by 1 percent brought about an increase of 0.66
percent in the sales of California celery. Decreasing the price
of Florida celery by 1 percent resulted in a decline of 0.66 per-
cent in the sales of California celery. Larger relative price
changes either upward or downward for Florida celery had a
correspondingly larger effect on the sales of California celery.

nature of the demand for each of the products, and does not take into ac-
count the interrelationship between them. The consequences of the inter-
relationship between Florida and California celery will be developed in
later sections of this report.








Competition Between Florida and California Celery 17

Upward or downward movements in the price of California
celery likewise affected the sales of Florida celery. Florida
celery sales were adversely affected by lowering the California
price and favorably affected by increasing the price of Cali-
fornia celery. However, the effect of a California price change
on Florida celery sales was somewhat less than the effect of a
Florida price change on California sales. Changing the price of
California celery by 1 percent brought about a change of 0.59 per-
cent in the purchase rates for Florida celery. As California
celery was sold at successively higher prices, the sales of Florida
celery increased by 0.59 percent for each 1 percent that the Cali-
fornia price was raised. Lowering the California price reduced
the sales rate of Florida celery by 0.59 percent for each 1
percent of the California price decline.
Under the conditions of direct comparison of the two prod-
ucts afforded by this study, customers quite readily made sub-
stitutions between Florida and California celery. A price in-
crease or decrease for either of the two products brought about
corresponding increases or decreases in the sales of the other
that were quite substantial. Consumers did not, however,
regard the two products as equally good substitutes for one
another, but were somewhat more willing to substitute Cali-
fornia celery for Florida celery than they were to substitute
Florida celery for the California product. While the differences
in the degree to which the two products were substitutable for
one another were not great, they were large enough to be sig-
nificant.

THE ECONOMIC INTERACTION BETWEEN
THE TWO PRODUCTS
Because customers quite readily shift back and forth be-
tween the purchase of Florida and California celery in response
to changing relative price conditions, it is evident that a linkage
exists between these two products in the market place. Actions
of producers and marketing agencies in either of the two areas
affect market conditions for the other. The effect of each upon
the other is determined not only by the degree to which the
two products are substitutable, but also by the manner in which
price changes affect the sales of celery grown in either area.
Together, these relationships can be used to examine how chang-
ing supply or market conditions for one of the two types of celery








18 Florida Agricultural Experiment Stations

might affect the price at which it would sell and, in turn, affect
the price of the other product.
The interplay of economic forces between Florida and Cali-
fornia celery takes place in a rather complicated fashion. How-
ever, it is of sufficient importance to justify a careful examination
of its nature. A change in supply or demand conditions for
celery grown in either producing area would set into motion a
chain of events that would ultimately affect the marketing con-
ditions under which both are sold.
Consider, for example, the sequence of economic effects re-
sulting from an increase in the supply of Florida celery. The
first effect of this increase would be a decline in the price of
Florida celery to accommodate the new supply situation. Be-
cause customers are quite willing to substitute Florida celery
for California celery, the lower Florida price would attract cus-
tomers away from the California product. The net effect of
this loss of customers would be that all of the available supply
of California celery would not move at prices prevailing at
the time the increase in the Florida supply occurred. Even
though no increase had occurred in the supply of California
celery, a price reduction would be necessary in order to accom-
modate the revised market conditions precipitated by the in-
crease in the Florida supply.
This would complete the first full cycle of adjustments to the
revised total supply situation. But the adjustment process
would not stop here. It would continue to operate, because
a change in the price of California celery affects the sales of
Florida celery. Consequently, a reduction in the California
price would, in turn, act on the demand for Florida celery, and
bring about a secondary downward adjustment in the Florida
price. The further decline in the Florida price would, of course,
again affect the demand for the California celery and bring
about further downward adjustments in it. Because the suc-
cessive effects of price changes for each product on the sales of
the other diminish, such adjustments would became smaller and
smaller until they eventually became negligible. At this point
a new market equilibrium is reached.4
It is apparent that an increase in the supply of Florida cel-
ery would give rise to a series of adjustments that would oper-
ate to establish new price levels for both products. The same

The method for determining the effects of various supply conditions
on the prices of the two products is given in the appendix.








Competition Between Florida and California Celery 19

would be true of price increases resulting from a decrease in the
supply of Florida celery and, for that matter, for increases or
decreases in the supply of California celery. The amount of
price adjustment involved in reaching an equilibrium for a new
supply situation is dependent upon (a) the way customers re-
spond to price changes for the respective products, and (b) the
extent to which each type of celery is substitutable for the other.
On the basis of the findings in this study, it would appear that
changes in the supply of either Florida or California celery
will have a material effect on the price of both products. To be
sure, the product confronted with the changing supply situa-
tion will undergo the greatest price adjustment. However, the
alteration in market conditions inherent in a changed total supply
will also influence the price at which the other type of celery is
sold, even though the supply of the latter type remains the same.
In order to demonstrate how the cross-effects between the
two products operate, two basic situations will be examined.
These consist of (a) the expected price effect resulting from
decreases of varying magnitudes in the supply of either or both
types of celery and (b) the expected price effect resulting from
various combinations of supply increases.
The estimates of the ultimate effects of various supply situa-
tions presented in the following discussion are based upon the
statistical relationships established from price response data
generated in the course of this particular study. Because of
the restricted market area in which it was conducted, conclusive
generalizations about the character of the national market for
celery are limited by both geographic and ethnic considerations.
The discussion is designed to provide an idea of how the prices
of the two products are linked together, and how each might
respond to various types of changes in supply conditions.
Effect of Various Supply Situations on Florida Celery Prices.-
The expected effect on Florida celery prices of various situations
entailing reductions in the total supply of celery available in
the market is shown in Table 2. If the supply of California
celery remains unchanged, successively smaller supplies of the
Florida product will result in consistently larger than propor-
tionate increases in the Florida price. With no change in the
supply of California celery, a 10 percent reduction in the Flor-
ida supply will result in an increase of 13.0 percent in retail
prices. A decrease of 25 percent in the Florida supply under the
same circumstances will result in a corresponding rise of 39.5
percent in Florida prices.








20 Florida Agricultural Experiment Stations

TABLE 2.-EFFECT OF VARIOUS CONDITIONS OF DECREASED TOTAL
SUPPLY OF CELERY UPON FLORIDA PRICES.

Percent Change Percent Change in California Supply
Percent Change I_
in Florida Supply
0 -5 -10 -15 -20 -25
----percent increase in Florida price--
0 0 1.4 2.8 4.4 6.1 8.0
-5 6.1 7.6 9.1 10.8 12.6 14.6
-10 13.0 14.6 16.2 18.0 19.9 22.0
-15 20.7 22.4 24.1 26.0 28.1 30.3
-20 29.5 31.3 33.2 35.2 37.4 39.8
-25 39.5 41.4 43.5 45.7 48.0 50.6


The first horizontal line in Table 2 shows the effect of various
decreasing California supply situations on the price of Florida
celery under conditions where the supply of the Florida prod-
uct remains unchanged. A decrease of 10 percent in the Cali-
fornia supply available on the market will result in an increase
of 2.8 percent in the price of Florida celery, even though the
supply of the Florida product remained the same. A more
severe decrease of 25 percent in California supplies under the
same conditions would result in an increase of 8.0 percent in
the Florida celery price.
The effect on the price of Florida celery of varying com-
binations of supply decreases involving both producing areas
is shown in the remaining sections of Table 2. It can be seen
that, in all instances, decreases in the supply of California cel-
ery under any given supply conditions for the Florida product
result in an increase in the price of Florida celery. Under con-
ditions where the supply of both products is reduced by 25 per-
cent, the study results suggest that the price of Florida celery
can be expected to increase by 50.6 percent.
The nature of the relationship between the Florida price
and various conditions of decreasing total celery supplies is
shown graphically in Figure 4. Line A-B illustrates the effect
on the Florida price when only the Florida celery supply is
reduced, while line A-C represents the effect when only the Cali-
fornia supply is reduced. The surface of the figure depicts the








Competition Between Florida and California Celery 21

effects on the Florida price when the supply of celery from both
areas is reduced in combinations of varying magnitudes.
Increases in the supply of either Florida or California celery
or of both products can be expected to adversely affect the
price of Florida celery. Estimates of such effects based upon
the study results are shown in Table 3. The first vertical column
in this table shows the expected effects of various increases in
Florida supplies under conditions where the California supply
remains unchanged. Supply increases will result in price de-
clines that are slightly larger than proportionate initially, but
which become slightly less than proportionate when large supply
increases are involved. In order to induce consumers to buy
all of the Florida celery available under conditions where the
supply increases 10 percent and the California supply remains
unchanged, a price reduction of 10.4 percent is required. Under
the same conditions, a supply increase of 25 percent will result
in a price decline of 22.8 percent.
The adverse effects of California supply increases upon the
price of Florida celery under conditions where the Florida sup-
ply remains unchanged is shown in the first horizontal row of
Table 3. An increase of 10 percent in California supplies on
the market can be expected to result in a decline of 2.5 percent
in Florida celery prices. If the California supply were increased
by 25 percent, the Florida price could be expected to decline by
5.8 percent.

TABLE 3.-EFFECT OF VARIOUS CONDITIONS OF INCREASED TOTAL
SUPPLY OF CELERY UPON FLORIDA PRICES.

Percent Increase in California Supply
Percent Increase
in Florida Supply 0 +5 +10 +15 +20 +25
percent change in Florida price--

0 0 1.3 2.5 3.7 4.7 5.8
+5 5.5 6.7 7.9 8.9 -10.0 -10.9
+10 -10.4 -11.6 -12.7 -13.7 1-14.7 --15.6
+15 -14.9 -16.0 -17.1 -18.0 -19.0 -19.8
+20 -19.0 --20.1 -21.1 --22.0 -22.9 -23.7
+25 -22.8 -23.8 -24.7 -25.6 -26.4 -27.2
_ _ _ _ _ _ _; __ 1 _ _, J____J __








22 Florida Agricultural Experiment Stations










55 ..55
55 \

50 50


S45

-. 440R

5 35
'- 35 q
0f 30
30n


30 5

S325
25
m



20
20

15 15
10
10 10










"A G
S 0 <\

Figure 4,--The behavior of Florida celery prices in response to various
conditions of decreased market supply from Florida and California.








Competition Between Florida and California Celery 23

The effects of combined supply increases from both produc-
ing areas on the price of Florida celery are consistently greater
than the effects of Florida supply changes alone. An increase
of 10 percent in the supply of both Florida and California celery
can be expected to result in a price decline of 12.7 percent for the
Florida product. Increases of 25 percent in the supply of both
products can be expected to reduce the price of Florida celery
27.2 percent.
The relationship shown in Table 3 is depicted graphically in
Figure 5. Line D-E shows the effect upon the Florida price of
increasing Florida supplies under conditions where the Califor-
nia supply is held invariant. Line D-F depicts the effect upon
Florida celery prices of California supply increases under condi-
tions where the Florida supply remains unchanged. The surface
of Figure 5 represents the effects on Florida celery prices of
various increasing supply conditions in both producing areas.




00 0






-0 -10
oL (0


-c2









Figure 5.-The behavior of Florida celery prices in response to varying
conditions of increased market supply from Florida and California.
4" DI
/S-25
-25/ -"/
-30~ / 3


Fiue 5-Tebhvo fFoiaclr rcsi epnet ayn
codtin oinrease maktspl rmFord n aiona








24 Florida Agricultural Experiment Stations

A peculiarity of the competitive relationship between the two
products is that increasing the supply of both products does not
have the same effect on the price of Florida celery as that result-
ing from a decrease in supply of corresponding magnitude. From
a comparison of the values in Tables 2 and 3, or an inspection of
Figures 4 and 5, it can be seen that price reductions that may be
expected as a result of supply increases are, in each instance, less
than the price increases that may be expected under conditions
where the supply is reduced by the same amount. This condition
becomes especially conspicuous when relatively large supply
changes are involved. An increase of 20 percent in the supply of
both Florida and California celery can be expected to result in a
decline of 22.9 percent in the price of the Florida product. On
the other hand, a decrease of 20 percent in the supply of both
products could be expected to result in an increase of 37.4 percent
in Florida prices.
Effect of Various Supply Situations on California Celery
Prices.-The upward adjustments that may be expected in Cali-
fornia celery prices under various conditions involving decreases
in the total supply of celery available in the market are shown
in Table 4. Under conditions of constant Florida supplies, a
decrease of 10 percent in the supply of California celery will
result in a price increase of 5.0 percent. If California supplies
were to decline sharply by one-fourth under the same Florida
supply conditions, the California price could be expected to rise
by 14.2 percent.

TABLE 4.-EFFECT OF VARIOUS CONDITIONS OF DECREASED TOTAL
SUPPLY OF CELERY UPON CALIFORNIA PRICES.

Percent Percent Change in Florida Supply
Percent Change
in California Supply
0 -5 -10 -15 -20 -25
-- percent increase in California price--
0 0 1.6 3.2 5.0 6.9 9.0
-5 2.4 4.0 5.7 7.5 9.5 I 11.6
-10 5.0 6.6 8.3 10.2 12.2 14.4
-15 7.8 9.4 11.2 13.1 15.2 17.5
-20 10.8 12.5 14.4 16.3 18.5 20.8
-25 14.2 15.9 17.8 19.9 22.0 24.4








Competition Between Florida and California Celery 25

Decreases in the supply of Florida celery under conditions
where the California supply remained unchanged could also be
expected to materially affect the price of the California prod-
uct. A decline of 10 percent in the available supply of Florida
celery could be expected to cause California prices to rise by 3.2
percent. A decline of 25 percent in the supply of the Florida
product would create a total market condition in which the
California price could be expected to rise by 9.0 percent, even
though no change occurred in the amount of California celery
available. If the supply of both products were curtailed by 15
percent, the price of the California product could be expected
to rise by 13.1 percent. If the supply of both declined by 25
percent, California celery prices could be expected to increase by
24.4 percent, or almost exactly proportionate to the extent of the
total supply reduction.


"


20 20

15 H 15 n

10










Figure 6.-The behavior of California celery prices in response to various
conditions of decreased market supply from Florida and California.

The expected behavior of California prices in response to
various types of short supply conditions in both Florida and
California is depicted graphically in Figure 6. The effect of
California changes alone is shown by line G-H. The effect of
downward adjustments in the Florida supply under conditions
where the California supply remains constant is shown by line
Jo


















where the California supply remains constant is shown by line








26 Florida Agricultural Experiment Stations

G-J. The effect of combined downward adjustments in the sup-
plies of both products is shown by the surface of Figure 6.
As was found to be the case for Florida celery, supply in-
creases have depressing effects upon the price of California cel-
ery that are smaller than the price increases that might be ex-
pected as a result of supply reductions of similar magnitude
(Table 5). With a constant Florida supply, an increase of 10
percent in the quantity of celery available on the market from
California could be expected to result in a price decrease of 4.3
percent for this product. The price of California celery could
be expected to drop by 9.8 percent, if the supply from this area
alone increased 25 percent.
TABLE 5.-EFFECT OF VARIOUS CONDITIONS OF INCREASED TOTAL
SUPPLY OF CELERY UPON CALIFORNIA PRICES.

Percent Increase Percent Increase in Florida Supply
in California Supply
0 +5 +10 +15 +20 +25
---percent change in California price--
0 0 1.5 2.8 4.1 5.3 6.5
+5 -2.2 3.6 5.0 6.2 7.4 8.5
+10 -4.3 5.7 7.0 8.2 9.4 -10.5
+15 -6.2 7.6 8.9 -10.1 -11.2 -12.3
+20 -8.1 9.4 -10.6 -11.8 -12.9 -14.0
+25 -9.8 -11.1 -12.3 -13.5 -14.6 -15.6


With no variation in the supply available from California,
an increase of 10 percent in the supply of celery from Florida
could be expected to reduce the California price by 2.8 percent.
An increase of 25 percent in the Florida supply would depress
the California price by 6.5 percent.
Increases in the supply of both products would result in
downward price adjustments for California celery that would
be less than proportionate to the extent of the supply increase.
A rise of 15 percent in the total supply of both products would
result in a decline of 10.1 percent in the California price. An
increase of 25 percent in the supply available on the market from
both producing areas would result in a decline of 15.6 percent
in the California price.
A graphic depiction of the effects of various conditions of in-









Competition Between Florida and California Celery 27

creased total supply on the price of California celery is shown
in Figure 7. The price effect of changes in the supply of Cali-
fornia celery under conditions where the supply of the Florida
product remains constant is shown by line K-M. The price
effect of changes in the supply of Florida celery under conditions
where the supply from California remains invariant is shown
by the line K-N. The surface of Figure 7 depicts the effects of
combined supply increases of varying magnitude from both
producing areas.



__ o,



0o -5
"e0 '10


S-0



-153

-15 -15
-
S -20 -20




Figure 7.-The behavior of California celery prices in response to various
conditions of increased market supply from Florida and California.

A Comparison of the Price Behavior of the Two Products.-
From the foregoing examination of the manner in which the
prices of Florida and California celery may be expected to re-
spond to varying total supply situations, several basic differ-
ences between the two products seem to emerge. Perhaps the
foremost of these is that, for any given change in total supply
conditions involving changes in the supply of both products, the
price adjustments that may be expected for California celery will
be less than those which would occur for Florida celery. Under
conditions of decreasing supply, any given combination of de-
creases involving both products results in expected price increases








28 Florida Agricultural Experiment Stations

for Florida celery that are larger than those which would likely
occur for California celery. Conversely, any combination of sup-
ply increases from both areas will apparently result in price de-
clines that will be larger for Florida celery than for the California
product.
A second major difference between the two products lies in
the fact that changes in the Florida supply either upward or
downward, under conditions where the supply of California celery
remains invariant, will result in inverse changes in the price of
Florida celery which will be considerably larger than the Cali-
fornia price variations precipitated by changes of correspond-
ing magnitude in the supply of California celery under conditions
of a constant Florida supply. The extent of the difference be-
tween the two products can be seen by comparing the first column
of values in Table 2 with the first column of values in Table 4,
and the first column of Table 3 with the first column of Table 5.
This difference may also be seen graphically by a comparison of
the slopes of lines A-B and D-E of Figures 4 and 5 respectively
with the slopes of lines G-H and K-M of Figures 6 and 7. Using
either or both of these means of comparison, it is apparent that
there is a substantial difference between the two products in
this regard.
Finally, the study results indicate that changes in the supply
of Florida celery will have more effect on the price of California
celery than corresponding changes in the California supply will
have upon the price of Florida celery. Under conditions involving
either supply increases or decreases, a change in the quantity
of Florida celery available in the market can be expected to bring
about an inverse change in the price of California celery that is
greater than the effect that a corresponding change in California
supplies would have on Florida prices. The difference between
the two products in this respect is not a large one, but it is
consistent and of sufficient importance to warrant attention and
consideration by the reader. Quantitatively, it can be examined
by comparing the top rows of Tables 2 and 3, which show the
expected price response of Florida celery to various supply condi-
tions for California celery, with the top rows of Tables 4 and 5,
which show the expected price response of California celery to
various supply conditions for the Florida product. The general
nature of the difference between the two products can be obtained
by an inspection and comparison of line A-C in Figure 4 with line
G-J of Figure 6, and line D-F of Figure 5 with line K-N of
Figure 7.








APPENDIX

TABLE 1.-EXPERIMENTAL DESIGN FOR THE STUDY OF THE COMPETITIVE
RELATIONSHIP BETWEEN FLORIDA AND CALIFORNIA CELERY.

Period*
Store Growing Period*
Number Area I II III IV V VI VII VIII IX
S-- --- (Price differential-cents)**- -

1 Florida .....-- ....-- .........------ -.... -4 0 4 -4 0 +4 +4 +4 0
SCalifornia .................... ... 4 0 0 4 4 4 0 +4 4
2 Florida 0.. ...4..- 0 ........-.. O 4 0 4 4 0 +4 +4 +4
S California .............................. +4 +4 0 0 4 4 4 0 +4
SFlorida ..................................... +4 0 -4 0 4 4 0 +4 +4
_California .. ...................... 4 +4 4 0 0 4 4 --4 0
SFlorida .... .... .- ....................- +4 4 4 0 -4 -4 0 +4.
California .............................. 0 +4 +4 4 0 0 4 4 -4
5 Florida .................-................ +4 +4 +4 0 4 0 -4 -4 o
California ............................. -4 0 +4 4 4 0 0 -4 -4
6 Florida ..........-....-..............--... 0 +4 +4 +4 0 -4 0 --4 -4
California ......................-.....- -4 -4 0 +4 +4 +4 0 0 -4
SFlorida .................-.......... .... 4 0 +4 +4 +4 0 --4 0 -4
__ California ............................... -4 -4 -4 0 4 +4 4 0 0
8 Florida ---------.......--...-.....--......---I .. 4 0 +4 +4 4 0 -4 0
California ......... .................... 0 4 4 -4 0 +4 +4 4
Florida ................................... 0 4 -4 | 0 +4 +4 +4 0 -4
9_ California ............................. 0 0 -4 1 -4 -4 0 +4 +4 +4
9----------------------------------------------~---------- 0 4 4 1 +4 + +
Each period was of one-half week duration, with Monday through Thursday defined as the first half of the week and Friday and Satur-
(lay as the second half.
** The differentials represent the amounts that the price of each type of celery was varied above or below the following base prices for
each product: California celery, 35 cents per stalk; Florida celery. 25 cents per stalk.
CO









30 Florida Agricultural Experiment Stations


TABLE 2.-SALES OF FLORIDA CELERY PER 100 CUSTOMERS BY STORES AND
BY PERIODS, CHICAGO METROPOLITAN AREA, MAY 12 THROUGH JUNE 12, 1958.

Period
Store
Number I II III IV V VI VII VIII IX

-Stalks

1 3.76 5.12 4.71 5.76 3.09 4.36 2.69 4.36 2.36

2 4.75 9.44 4.52 8.86 4.67 6.21 3.10 5.14 2.38

3 5.65 12.68 6.66 7.45 7.24 8.50 4.90 3.92 3.17

4 2.00 4.93 3.42 6.90 3.31 5.51 2.84 3.66 1.87
5 3.63 8.33 4.67 8.18 6.00 6.52 5.61 5.99 3.26

6 2.58 4.23 2.69 5.07 3.08 6.03 2.79 4.66 2.78

7 5.62 7.70 3.61 6.30 2.62 8.73 3.53 4.80 2.82

8 3.18 4.27 2.65 4.27 1 2.24 4.08 2.79 4.57 3.16

9 2.94 7.55 3.92 6.18 2.39 3.67 2.93 4.12 3.16



TABLE 3.-SALES OF CALIFORNIA CELERY PER 100 CUSTOMERS BY STORES AND
BY PERIODS, CHICAGO METROPOLITAN AREA, MAY 12 THROUGH JUNE 12, 1958.

Period
Store
Number I II 1 III IV V VI VII IVIII IX

--------Stalks- -

1 0.77 3.38 0.57 2.83 3.53 5.06 1.81 2.60 1.04

2 0.60 1.06 1.00 1.93 1.61 4.60 2.67 2.44 1.40

3 1.10 3.90 0.79 1.85 1.20 4.24 3.88 5.27 2.41

4 0.78 1.06 0.49 1.45 0.83 2.78 1 1.27 1.79 1.77

5 3.60 4.26 1.16 2.52 0.95 4.57 1.89 3.03 1.73

6 0.77 1.03 0.57 0.90 0.62 1.44 1.49 1.05 1.66
7 2.31 2.58 1.97 2.57 0.94 3.39 2.14 3.26 1.92

8 0.43 1.22 1.58 1.44 0.97 1.24 0.82 1.10 1.08

9 0.50 1.76 1.01 1.69 1.06 2.71 1.29 1.67 0.40








Competition Between Florida and California Celery 31

METHOD OF DETERMINING EFFECTS OF VARIOUS SUPPLY
CONDITIONS UPON PRICES OF FLORIDA AND CALIFORNIA CELERY

Given:
log ql = 0 + 11log pl + 121og p2

log q2 = P20 + P21og PI + %22log p2
where,
ql = Quantity of Florida celery purchased

q2 = Quantity of California celery purchased

pl = Price of Florida celery

p2 = Price of California celery

Pi0' p0 = Log of regression constants
Ik = Regression coefficient (k = 1, 2)

P2k = Regression coefficient (k = 1, 2)

Then
dql dpl dp2
dlog q = + 1 + (p
1 q 11 p, 12 p2

dq2 dpl dp2
dlog q-2 + + -p
2 q2 21 pl 22 p2
For small supply changes, the estimating equations In
terms of percentages can be expressed as follows:

"1 11 + P12 2

"2 = 21 1 + P22 2
where,
dql
"- = (100)- = the percentage change In ql
1 q,

dq2
2 = (100) the percentage change in q2
2 ql 2 2








32 Florida Agricultural Experiment Stations


dp1
1 = (100) = the percentage change in p,
pi
dp2
0 = (100)-- = the percentage change in p2

and, from the estimating equations which the model
yielded,

13l = -1.01569

P12 = 0.58709

321 = 0.65947

122 = -2.55301
However, for large supply changes, the following
estimating equations expressed in terms of logarithms
are required:



62 = P2141 + P2202

where q
S= log (1 + ---) = log (1 + )
1 1
Aq 2 Ap
S= log (1 + Aq2 ) = log (1 + -2)
2 q2 2 P2

Solving for 01 and 2, we have

S + 3 22 1312
1 11 22- 12P2 1 P1122 012P21

S121 +1 11
2 11B22 312832 1 811122 812821 2








Competition Between Florida and California Celery 33











Substituting the estimated values for PIll, 12' P21'
and P22, we have

1 = -1.15736 61 0.26615 2

V2 = -0.29896 6 0.46044 <2

Percentage changes in p, and p2 associated with assumed
percentage changes in q and q can be determined by
solving for 0. for given 6. ana resorting to the
following formulae:

For 0. > 0

antilog(i + 2) 100 = percentage increase In pi

For i. < 0

100 antilog(,i + 2) = percentage decrease in p,









34 Florida Agricultural Experiment Stations










ACKNOWLEDGMENTS

It is unfortunate that the limitations of space permit the authors to
express their appreciation to only a few of those who contributed to the
success of this research venture. Many, in seemingly small ways but at
propitious moments, paused and gave help that was of incalculable value.
However, the assistance, kindness and encouragement of a few were of
signal importance. To those, for their contributions either through their
actions or their attitudes, the writers are especially grateful.
The following individuals and the business firms which they represent
gave assistance during the course of the field work in the Chicago market
area. To the field staff, far from home and often in great need of assistance,
theirs was the helping hand and the encouraging word that made the
difference.
Messrs. Harold Wilkins and Harry Van Tuyle of the National Tea
Company
Messrs. Anthony and Daniel Arrigo and R. M. Quinn of Caruso
Fruit Distributors
Messrs. Martin and Nathan Roth and Samuel Senn of N. Roth and
Sons
Mr. Joseph Podgorski and associates of the Central Cold Storage
Company.
The writers were not without assistance from their associates and col-
leagues in Florida.
In the procurement of necessary supplies of Florida celery, the as-
sistance provided by Mr. M. L. Cullum of Chase and Company in Sanford
and by Mr. George Wedgeworth of Wedgeworth Farms at Belle Glade
was vital to the success of the undertaking.
To these, and others too numerous to mention, the writers owe a debt
of gratitude.













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