Agricultural Pricing: What Prices to Charge for Dairy Products

Parameters

Table 21.4 shows the parameters that are used in this example.

Table 21.4: Parameters

Parameter Name

Interpretation

supply[raw]

Supply of each raw material (in tons)

prev_demand[product]

Demand for each product in previous year (in tons)

prev_price[product]

Price of each product in previous year (in £/ton)

percent[product,raw]

Percentage composition for each product and raw

elasticity[i,j]

$\displaystyle {\frac{\text {Percentage increase in demand for product}\ i}{\text {Percentage increase in price of product}\ j}}$