An econometric model of the U.S. apple sector was formulated for 1952-81. A system of demand, domestic market allocation, and margin equations were estimated using the two-stage least squares procedure. Retail prices were found to be significantly related to quantity, real per capita expenditures, substitutes complements, and stocks. The signs of the estimated coefficients in the model agreed with theoretical expectations and their magnitudes were statistically significant. A reduced-form solution to the structural model was derived to show the influence of exogenous variables on product prices, margins, and domestic use.