An Economic Study of Grape Crop Supply Response Function in Libya During the Period ‎‎1990-2010‎

Abstract

The aim of this study is to estimate supply response analysis of grape crop in Libya by using Marc Nerlove Adjusted Model during the period 1990-2010. The log- log form was selected to represent the supply response equation. The results show that all the parameters were significant at 5%. The value of price supply in the short-run and long-run were (0.026), (0.05) respectively. The elasticity of price supply in the short-run and long-run were inelastic.

Key words: supply response, Marc Nerlove Model, price elasticity, Libya.