| The use of tin in the United States for the production of beer and soft-drink containers has varied greatly since 1950. While the consumption of both of these beverages has grown substantially, tin consumption has actually declined. This thesis first evaluates the role of material substitution in affecting demand requirements in container production and then examines the role of relative material prices in affecting material substitution. The study finds that much of the change in tin usage is the result of material substitution. It also finds that material prices are important in affecting material substitution; however, the price effect is largely indirect through its influence on the level and direction of research and development leading to technological change. Besides technological change, there are a number of other factors which influence material substitution, including demography and per capita income, consumer preferences, government regulations, market structures and conduct, and container competition. The implications of these findings concerning the nature of mineral demand, demand forecasting, material shortages, and market power are considered. |
