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Three quarterly models were used, based on 1965-75 data, to examine the statistical relation~hips between the retail value, the farm value, and the spread of a fixed sample of food products included in the market basket. The first model gives quarterly expected price indices and price flexibilities for meat, dairy, poultry, and eggs at retail and farm levels. Quarterly projections for the retail values of nine different product groups of the market basket and their total values were obtained from the second model. The third model gives estimates of the systematic variations between the spread and food values at retail and farm levels of the market.


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