to drop by (-.256 10,000,000 1,000 100 = 25.6) 25.6 thousand

hundredweight or 2,560,000 pounds. Typically though, interest is focus-

ed on percentage changes in prices and quantities. These elasticities

associated with the structural estimates in Table 2 may be found in

Table 3. Here percentage changes about the means of the price and

import variables are related to one percent changes in five exogenous

variables.

 The elasticities in Table 3 are relevant only in terms of structural

analysis, not for prediction, since the reduced form representation is

required for prediction. Further, it should be remembered that Florida

production is actually an endogenous variable in the complete model so

that the structural elasticities presented imply only a partial equilib-

rium. Nonetheless, several interesting observations may be drawn from

Table 3.

 The direct price elasticities of demand at the wholesale level may

 be approximated by inverting the elasticities of price with respect to

 Florida production. They are -2.85 for tomatoes and -1.20 for green

 peppers. This elasticity of demand for tomatoes appears to be overstated

 compared to other studies (Jesse and Machdo) thus, some caution is

 warrented in interpreting these preliminary results. Although it appears

 that income elasticities are exaggerated note that in each case they are

 only about 40 percent greater than the corresponding elasticity on CPI,

 the implicit deflater in each price equation. Perhaps the most interesting

 feature of the results summarized in Table 3 is that Florida prices are

 much more sensitive to imports than to other U.S. production. Thus, it

 appears that Mexican imports have a direct and substantial impact on the

 prices Florida vegetable producers receive.