A model for analysis of supply reaction to price applied to grapes in China

Grape is a kind of perennial crop. Planting acreage, labor cost and export price are main factors which affect the grape production industry. Based on the Nerlove model, the supply response model of grape was established in this paper It can be used for quantitative analysis of supply response to its planting acreage, producer price and import price. The model can reveal the grape's production characteristics related to its planting acreage. An empirical analysis showed that the grape's planting acreage was not highly sensitive to the short-term and the long-term producer price. The supplies, however, were remarkably responded with the import price.