California's Top Crops Show Resilience to Price Changes, Impacting Consumer Welfare.
The article estimates how prices and incomes affect the demand and supply of important California crops like almonds, walnuts, and tomatoes. They used different mathematical models to figure this out. The demand for these crops doesn't change much when prices go up or down, and people don't buy a lot more when they make more money. On the other hand, farmers don't produce much more when prices go up quickly, but they do in the long run. For cotton, almonds, and alfalfa, farmers produce a lot more when prices go up. This information can help policymakers understand how changes in prices and policies affect consumers and farmers.