Farm prices soar as consumer demand drives significant substitution between inputs.
The article explores how consumer demand and marketing affect farm prices for different food products. By analyzing eight specific food items, the researchers found that there is significant substitution between farm and marketing inputs. The study shows that demand for farm products can change based on factors like prices and consumer preferences. Overall, the results suggest that demand for farm outputs is more flexible than previously thought, with demand elasticities being larger than assumed for most food items.