Analyzing maize price elasticity in the US

Abstract

The main goal of this paper is to explore the effect of demand and supply quantity on maize prices by analyzing price elasticity. To examine the price elasticity of supply and demand of maize, multiple linear regression was used in this study and was conducted at the national level and state level in the USA. Results revealed that the effect of supply on maize price is different within con-belt states and non-corn-belt states and the majority of the demand factors have negative price elasticity.