A MODEL OF A MINERAL AGGREGATE MARKET - THE EASTERN COASTAL USA

The mineral aggregate market of the Eastern USA is quantitatively mode lled and the interaction of its components measured. Systematic study of supply, demand, price and transport characteristics of aggregate id entified relevant modelling parameters and generated corresponding sub models. The supply model is based on production data segmented by labo ur inputs. Demand estimates overall consumption on the basis of per ca pita output and interest rates. Price depends mainly on geological ava ilability and on market size, size of operation and average annual per capita income. Distribution is the least cost way of balancing produc tion and consumption, given the constraints imposed by transport costs . The model developed is used to simulate different situations with it s outputs illustrating its versatility and possibilities. The examples presented concern the price isoquants for coarse aggregate in 1987, p rice increase isoquants for 1987-92, the impact of foreign sources of aggregate and sensitivity to changes in transport costs.