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The benefits of OJ advertising result from 1) increased gallon sales and 2) higher prices. Advertising was estimated to increase the delivered-in price by $.083 per single strength equivalent (SSE) gallon in 2006-07. The with-advertising and without-advertising delivered-in prices were estimated at $1.981 and $1.898 per SSE gallon, respectively. With FDOC advertising focusing on the U.S. market, benefits due to advertising were estimated for the U.S market only. However, it should be recognized that to the extent world OJ prices increase by the same amount as the U.S. price increase ($.083 per SSE gallon), not only U.S. imports of OJ, but also Brazil and other country exports of OJ to Europe and other destinations also benefit from the advertising-induced price increases.


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