IDEAS home Printed from https://ideas.repec.org/p/ags/aaea87/270116.html
   My bibliography  Save this paper

The Effects Of Supply Shifts On Producers Surplus

Author

Listed:
  • Miller, Gay
  • Rosenblatt, Joseph
  • Hushak, Leroy

Abstract

Changes in the supply curve caused by technological improvements in production or changes in national policy may or may not benefit producers as a whole, depending on the type of shift in the supply curve. Different changes in the supply curve that model this situation are studied and the change in producers surplus is examined depending on quantitative aspects of the supply and demand curves. It is shown that for supply and demand curves that are linear or power functions, a small downward pivot of the supply curve will increase producers surplus only if the equilibrium point is far enough into the elastic region of the demand curve, and any downward pivot of the supply curve will decrease producers surplus if the equilibrium point is in the inelastic region of the demand curve. Similar results are obtained for the more general case of convex supply and demand curves.

Suggested Citation

  • Miller, Gay & Rosenblatt, Joseph & Hushak, Leroy, 1987. "The Effects Of Supply Shifts On Producers Surplus," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 270116, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea87:270116
    DOI: 10.22004/ag.econ.270116
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/270116/files/aaea-1987-126.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/270116/files/aaea-1987-126.pdf?subformat=pdfa
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.270116?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. R. Duncan & C. Tisdell, 1971. "Research and Technical Progress: The Returns to Producers," The Economic Record, The Economic Society of Australia, vol. 47(1), pages 124-129, March.
    2. Jeffrey T. LaFrance & Harry de Gorter, 1985. "Regulation in a Dynamic Market: The U.S. Dairy Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(4), pages 821-832.
    3. repec:bla:ecorec:v:47:y:1971:i:117:p:124-29 is not listed on IDEAS
    4. Norton, George W. & Davis, Jeffrey S., 1979. "Review Of Methods Used To Evaluate Returns To Agricultural Research," Staff Papers 13520, University of Minnesota, Department of Applied Economics.
    5. Roger N. Rose, 1980. "Supply Shifts and Research Benefits: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(4), pages 834-837.
    6. George W. Norton & Jeffrey S. Davis, 1981. "Evaluating Returns to Agricultural Research: A Review," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(4), pages 685-699.
    7. Leroy J. Hushak, 1971. "A Welfare Analysis of the Voluntary Corn Diversion Program, 1961 to 1966," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(2), pages 173-181.
    8. J. W. Freebairn & J. S. Davis & G. W. Edwards, 1982. "Distribution of Research Gains in Multistage Production Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(1), pages 39-46.
    9. R. K. Lindner & F. G. Jarrett, 1978. "Supply Shifts and the Size of Research Benefits," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(1), pages 48-58.
    10. Rajan K. Sampath, 1983. "Returns to Public Irrigation Development," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(2), pages 337-339.
    11. R. K. Lindner & F. G. Jarrett, 1980. "Supply Shifts and the Size of Research Benefits: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(4), pages 841-844.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael Harris & Alan Lloyd, 1991. "The Returns to Agricultural Research and the Underinvestment Hypothesis ‐ A Survey," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 24(3), pages 16-27, July.
    2. Edwards, Geoff W. & Freebairn, John W., 1982. "The Social Benefits from an Increase in Productivity in a Part of an Industry," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 50(02), pages 1-18, August.
    3. A. C. Herruzo, 1992. "Producer Benefits From Technology Induced Supply Shifts In The Ec Cotton Regime," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(1), pages 56-63, January.
    4. Alston, Julian M. & Chalfant, James A. & Pardey, Philip G., 1993. "Structural Adjustment In Oecd Agriculture: Government Policies And Technical Change," Working Papers 14473, University of Minnesota, Center for International Food and Agricultural Policy.
    5. Vernon Ruttan, 1982. "Bureaucratic productivity: The case of agricultural research revisited — A rejoinder," Public Choice, Springer, vol. 39(2), pages 319-329, January.
    6. Vere, David T. & Sinden, Jack A. & Campbell, M.H., 1980. "Social Benefits of Serrated Tussock Control in New South Wales," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 56(03), pages 1-16, December.
    7. T. J. P. Voon, 1992. "A Cross‐Commodity Appraisal Of Demand‐Raising Research Benefits: Pork And Chicken In Australia," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(2), pages 243-247, May.
    8. Radhakrishnan, Manju & Islam, Nazrul & Ward, Glynn, 2009. "Measuring the benefits from R&D investment beyond the farm gate: the case of the WA wine industry," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48169, Australian Agricultural and Resource Economics Society.
    9. Alston, Julian M. & Freebairn, John W. & James, Jennifer S., 2004. "Levy-funded research choices by producers and society," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(01), pages 1-32.
    10. McVey, Marty Jay, 1996. "Valuing quality differentiated grains from a total logistics perspective," ISU General Staff Papers 1996010108000012326, Iowa State University, Department of Economics.
    11. Alston, Julian M., 1991. "Research Benefits in a Multimarket Setting: A Review," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 59(01), pages 1-30, April.
    12. Quade, Kathryn J. & Brennan, John P. & Aw-Hassan, Aden & Nordblom, Thomas L., 2002. "Impact on Australia of ICARDA’s Research on Kabuli Chickpeas," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 173989, Australian Agricultural and Resource Economics Society.
    13. John B. Horowitz & Michael A. Karls & Juan Sesmero & T. Norman Van Cott, 2023. "Beyond Simple Profit Maximization in Uncertain Markets: How Innovation and Entry Change Supply Curves and Producer Surplus," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 38(Summer 20), pages 55-77.
    14. Widmer, Lorne & Fox, Glenn & Brinkman, George, 1987. "The Rate of Return to Beef Cattle Research in Canda," Working Papers 244821, University of Guelph, Department of Food, Agricultural and Resource Economics.
    15. J. M. Alston & J. D. Mullen, 1992. "Economic Effects Of Research Into Traded Goods: The Case Of Australian Wool," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(2), pages 268-278, May.
    16. Pannell, David J. & Morrison, David A., 1994. "Towards a Decision Support System for Economic Evaluation of Agricultural Research," 1994 Conference (38th), February 8-10, 1994, Wellington, New Zealand 148530, Australian Agricultural and Resource Economics Society.
    17. Mullen, John D. & Alston, Julian M. & Wohlgenant, Michael K., 1989. "The Impact Of Farm And Processing Research On The Australian Wool Industry," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 33(01), pages 1-16, April.
    18. Bradford F. Mills, 1998. "Ex Ante Research Evaluation and Regional Trade Flows: Maize in Kenya," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 393-408, September.
    19. J. Brian Hardaker & Jock R. Anderson & John L. Dillon, 1984. "Perspectives On Assessing The Impacts Of Improved Agricultural Technologies In Developing Countries," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 28(2-3), pages 87-108, 08-12.
    20. Freebairn, John W., 1992. "Evaluating The Level And Distribution Of Benefits From Dairy Industry Research," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 36(2), pages 1-25, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea87:270116. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: http://www.aaea.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.