Abstract
In this work, we determined the effect of changes in the price of inputs and the main factors behind the supply of barley grain in Mexico using a simultaneous equation model and annual statistical information from 1980-2010. The results indicate that the supply of barley grain in Mexico inelastic and elastically responds to changes in the rural average price of barley produced under irrigation and temporary, with own-price elasticities of 0.992 and 1.222. This implies that the producer price is a tool that can be used to increase production and reduce imports.
