The Supply Elasticity for Milk in the Short Run

LTHOUGH the recent reduction in the price support level for milk Ahas focused attention on the nature of its supply elasticity, this subject has been the subject of intermittent study by economists for many years. I think it is fair to say that many of these studies have met with a rather poor degree of success, part of which is due to some characteristics of the basic data economists have had to work with, and partly to the inherent complexity of the dairy industry itself. Furthermore there seems little prospect that these difficulties will become much less troublesome in the near future.