Аuthors: V. F. BALABAYKIN, doctor of economic sciences, professor, head of department,
Chelyabinsk State Agroengineering Academy (75, Lenin Av., 454080, Chelyabinsk),
B. S. KORABAEV, senior lecturer,
Kazakh Humanitarian Juridical and Innovative University of Kazakhstan (94 Abay Str., 071400, Republic of Kazakhstan, Semey)
Abstract: This article is concerned with a mechanism of demand for livestock products, depending on the price and the real possibili- ties of buyers. From a quantitative point of view in this article, customer demand is characterized by a logarithmic usefulness function. This function has been selected because it satisfies the basic requirements for usefulness function. The structure of the East Kazakhstan region includes 16 districts that have inhomogeneous ethnic composition and an inhomogeneous level of wages, so in each district, certain types of livestock animal are preferred. The variations in preference are characterized quantitatively by coefficients in the usefulness function. These coefficients vary from 0 to 1. The higher is the ratio, the more preferable is the given type of livestock production for a given area. To determine the rational consumer behavior of livestock products, a nonlinear programming model is used, where as a target function the total usefulness function appears, and as limitations a part of the family budget for the purchase of livestock products appears. The unknown parameters of the usefulness function are determined by the expert survey in each district of the East Kazakhstan region. For a complete description of ratio- nal behavior it is necessary to know how the price changes and the changes in the real possibilities of buyers, affect the change in demand for livestock products. The application of the method of Lagrange multipliers allowed of determining the analytical dependence that characterizes the effect of price changes and the consumer budget for the demand of livestock products.
Keywords: demand function, livestock products, logarithmic usefulness function, the consumer budget, areas of East Ka- zakhstan region, rational behavior, the method of Lagrange multipliers, nonlinear programming, optimal values, change of pa- rameters, effect of varying the parameters of demand change.
