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Abstract
Increased advertising raised natural cheese sales by about 21 million pounds and processed cheese sales by about 193 million pounds during September 1984- June 1989. These sales were for cheese consumed at home. Declining real prices of natural cheese increased sales by about 566 million pounds. Increasing real incomes raised natural cheese sales by 379 million pounds and increased processed cheese sales by about 10 million pounds. An assessment of 15 cents per hundredweight of milk sold commercially, mandated by the Dairy and Tobacco Adjustment Act of 1983, funded the advertising. The authors used estimated econometric demand models to simulate these results.