The objective of the present study was to investigate the dynamics of açai market in Pará State, from 1994 to 2009, through the simultaneous estimation of demand and supply using the Generalized Method of Moments (GMM). The results showed that the demand and supply are inelastic to price. The cross elasticity indicated that other fruits commercialized in the same market are substitutes for açai. The income elasticity, with value of 2.36, showed that açai is considered as luxury goods. The cost elasticity showed that the rural wage is a influences strongly in the reduction of açai supply, as the production system is highly dependent on labor. Finally, the adjustment elasticity showed that the one-year production of açai influences significantly the adjustment of supply for the following year's harvest.
demand and supply of açai; simultaneous equations; Pará State
