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Additional info for Economics for Agriculture: Food, Farming and the Rural Economy
Consumption will equal the quantity demanded at the market price when a competitive market is either in equilibrium or when a price is above the equilibrium level. However. over time. consumption and expenditure will alter to reflect the interaction of supply and demand. The demand for food will be affected by the factors listed above and it is logical to examine first how the demand for a foodstuff varies with the price of the food. 1 it can be seen that changes in price result in movements along the demand curve as quantity demanded responds to the 20 Economics for Agriculture new level of price.
28< 24 51 12 72< Per person per week" (pence) ("10 households") a. Aver age household consumption and expenditure. b. Percentage of households purchasing during the survey week . c. All fresh fruit. The figures in brackets are estimates of the standard errors and indicate the confidence with which the coefficients can be accepted as accurate measures of these elasticities . The values of R~ give the proportion of the residual variation in monthly average purchases (after the removal of seasonal and annual shifts) explained by the own- and cross-pr ice elasticities.
All fresh fruit. The figures in brackets are estimates of the standard errors and indicate the confidence with which the coefficients can be accepted as accurate measures of these elasticities . The values of R~ give the proportion of the residual variation in monthly average purchases (after the removal of seasonal and annual shifts) explained by the own- and cross-pr ice elasticities. MAFF (1985), National Food Survey 1983. pp. 30,35 and 205. 5 Estimates of Price and Cross-price Elasticities of Demand, 1983 ~ 26 Economics for Agriculture Therefore , the overall effect on the demand for different foods is more complex than the cross-price elasticity alone .
Economics for Agriculture: Food, Farming and the Rural Economy by Berkeley Hill