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Essay Details:
Essay text:
Gallo's planning department had estimated that retail market was well-represented by the following demand formula:
Q = 95,000 +65 I - 100,000 P
where
I = (average income in $ per household) = $3,000
and
P = (average market price per kg for parboiled rice) = $1.50
They did not estimate the standard error of this estimate, but believed it would be rather small. This formula also described the behavior of the specialty and parboiled segment of the market, adjusted for their segment volume levels.
Specialty rice products accounted for about 20 % -- and rising -- of the 140,000 ton total market and the majority of Gallo's sales were in this segment, particularly in the supermarket portion of this segment and in the area close to Buenos Ares...
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