Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Oct, 1951, Volume 19, Issue 4

La Demande des Biens Indirects<466:LDDBI>2.0.CO;2-P
p. 466-471

Rene Roy

The demand for intermediate commodities is related to the demand to the final commodities in the production of which they enter. It is shown how their elasticities are determined by the technical conditions of production as well as the market for the final products. In particular, positive price elasticities may appear if the fixed cost is an important part of the production expenses. The model is fairly simple but can easily be generalized.

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