Price supply response of vegetable growers in the Sultanate of Oman

Information on supply price elasticities has been acknowledged as being very important for decision makers at the macro and micro levels. This paper presents an empirical investigation of vegetable growers' responses to prices in Oman. It develops a single supply response function incorporating adaptive expectation model for prices. Results indicate that growers adjust relatively fast to changes in expected prices. However, these adjustments are rather low for some crop in the short- and long-run. Growers' production decisions have also shown a significant response to prices of other products competing for farm space and other production resources. These results will support efforts aimed at market development and crop enhancement programs.