Price reflects the value of the good at production plus transportation costs from the point of production to the point of sale. Therefore, the price of peaches would be $6 + $0.50 = $6.50/lb. in Virginia.

NAV = Offering price x (1 - Load) = $23.50 x (1 - 0.06) = $22.09

The percent change in real output equals the percent change in nominal output less the percent change in the price level. We cannot know how much real output changed without knowing the change in nominal output too.

Restricted foreign supply implies that the supply of the good will fall. Domestic supply will rise but not to the level high enough to maintain the same level of supply in the market. Domestic producers enjoy a higher price as a result of the restricted supply. The higher price in the market implies that domestic consumption will fall.

Commodities generally have negative correlations with equities and offer some of the greatest risk diversification potential.