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Agricultural Yield Based on Relative Price

Description:

Rather than have two prices, one for sales and one for goods and services purchased, this model has relative price(P) which is proportional to the avalability of goods and services(F) and to quantity of crop produced(C).

Examples:

  • Citrus industry: quantity of crop produced can affect prices received for oranges - the larger the crop,the lower the price.
  • Small farmer: when tomatoes are abudant and easily available, they must be sold cheaper than when they come scarce.
    		•  Diagram

    Variables:

    P = relative price
    F = availability of goods and services
    C = quantity of crop produced
    A = farm assets

    Equations:

    R = I0/(1 + k0*A)
    P = k6*F/C
    DA = P*k5*C - k3*A - k1*R*A
    DC = k2*R*A - k4*C - k5*C

    Simulation:

    The graph shows the changes of A(red), P(green) and C(blue) over a time period.
    Source code: Agrprice.java

    "What if" Experiments:

  • How would assets, crop and price be different if the interprise starts with more available goods and services?
  • What would happen if availability of goods and services were decreasing each year?
    		•