Notice of Hearing on the Application to Use Sodium Fluoroacetate ...

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7-- - .. I v 2. ;r. ?wer ssl cilazed a ;an :.\/el pri zs ; ..I; 21 , - 7%; )f ,- j .5i zrLj
irice '?astici:y <strong>of</strong> denand fcr ldnb <strong>of</strong> - 3 . 1 wn;-- I L~I 7;lesns zha: 2 ,?Re
percent increase in iuppl) ~culd ~esul; in a grercer i,+an d ace
perc-nt decrzase in the aric.. This decrease in pricz :vou?d incrnase
demand by less thdn one percent. ?e ci tod other studies
showing price flexi bi 1 i ty within the range af his calcuiations,
noted that hi8 calculatjoni (based on 7970 ;s l38C d2~3) 3ssdmed
mat the denana for iamb was cansran:, ~ker~as the oata suggested
demand :vas dec l ni ng and znersfor? asserzed ha: his is~imated
pric~ elasticity <strong>of</strong> -0.61 was an overt.siima~a. ie concluded inaf
the demand fur lamb was loss elastic than his ?s~imate Gr inelassic
and thac i ncreasel eWeccive predator cgntrol N O U ! ~ degress pric~s
more than enough to <strong>of</strong>fset increased revenue frsn :A? jaie af an:aa:s
i'
176. Cr. John Schaub (iinding W) testified that xhe ;r:ce relarionshi?
for lanb &as elastic, i .2., that an increase in quanrity mrkeced
would result in a less than equivalsnt or corresponding dectease
in price. He asserted that this conclusion was supocrted by a
preponderance <strong>of</strong> the literature and tha; both jraducsrs and consumers
would benefit by a reduction in predation losses and an increased
supply <strong>of</strong> lamb. In cdlculating increases in revenue resulting from
assumed decreases in predation losses attributable to luse <strong>of</strong> 1080
and increases in the number <strong>of</strong> lambs markekd, Dr- Schaub used a price
flexibility value or coefficient <strong>of</strong> -.42 (farm level, yearly basis)
taken from a USOA publication (Usman & Gee) not in evidence. He