The objective of the Study is to examine the price - quantity relationships that
connect the three commodities of beef, chicken meat and Tilabia. This is achieved by
identifying supply, and demand of each of the three commodities, and studying how
they are affected by price levels. To achieve the objective, Supply elasticities were estimated as 1.6S, 1.23 and
1.S for the beef (kondose),Chicken, and tilabia fish respectively, which reflects the
existence of a strong relation between price and production for each of the three
commodities. Also Almost Ideal Demand sy stem have been estimated using
restricted iterative seemingly unrelated regression by imposing adding up,
homogeneity, symmetry, and negativity restrictions across the equations for the
system. It can be said that, these restrictions are compatible with the economic theary
according to the behavior of consumer demand. The results of AIDS demand systems showed that there are negative relations
among the p rice and consumption 0 f goods according too wn price elasticity, a Iso
there are positive relations among the alternative prices of goods and the
consumption of good subject to study, according to the cross price elasticity. Analysis
of the multi -market model for the three commodities have shown that a 1% increase
in the prices of the three commodities would lead to about 1.61,S.06 and 1.9S
thousand tons decreases in the demand 0 f t ilabia fish, e ef [KandoseJ a nd chicken
meat. respectively .The resulting social loss of tilabla fish production is about
1.77,thousand tons, whereas to loss of beef (kandose) is about 4.12 thousand tons
while that of chicken meat is 2.02 thousand tons, these figures reveal the direct
impact of the multi- market mechanism on increasing the supply and decreasing the
demand of any commodity throgh the interaction among the three commodity
markets. The losses in production, as a results of the previous 1% increase in the
prices of the commodies, were estimated at 150.04, 455.93 and 169.56 million L.E for
tilabia fish, beef (kandose) and chicken meat, respectively. The total losses for the
consumer of the three commodities were about 88.67, 321.S6 and 92.11 million L.E.,
respectively. The total loss to society is about 1277.88 million L.E of which 238.71 for
tilabia fish, 777.49 for beef (kandose) and 261.68 for chicken meat. The study has
also shown that the producer entertains a positive return of about 198.85 million L.E
from tilabia fish, 723.9 million L.E from beef (kandose) and 219.36 million L.E from
chicken meat This proves that the producer price is higher than the border price. The
gains for the consumer were about 88.67 million L.E from tillable fish, 321.56 million
L.E from beet (kandose) and about 92.12 million L.E from chicken meat. The changes
in govemment income were about 1917.64 million L.E of which 348.89,1179.83 and
388.92 million L.E for tillable fish, beef kandose and chicken meat respectively. The
second scenario of the study was to assume and increase in production in three
commodities of about 25% by using the multi- market modal it was possible to predict
the new levels of commodity prices which results in a decrease of 40%, 17% and 15%
of the producer prices for tilabia fish, beef (kandose} and chicken meat, respectively
.Form the results of the study it was recommended that. 1 - Agreat care should be given when deciding on price policies since their interaction
with consumption and income could lead to very serious Social problems. 2 - U~ing the appropriate policy tools which are consistent with the objectives or these
policies and the prevailing economic system in the society.