Features of determining the elasticity of demand for fruit and berry products
Journal Title: Економіка АПК - Year 2018, Vol 6, Issue
Abstract
The purpose of the article is to determine, on the basis of the AIDS model, the price elasticity of demand for fruits and berry products in Ukraine Research methodology. In the research process the following scientific methods have been used: mathematical modeling, analysis and synthesis, comparative evaluation. The methodical base for the research is the model of applied analysis of demand. Research results. The usage of the AIDS model on the basis of expenditure and household resources in Ukraine in the period between 2002 and 2015 allowed to calculate the elasticity of demand for fruit and berry products, determine coefficients of demand functions, their statistical characteristics, and assess the significance of the model components. Coefficients of demand models, their statistical characteristics and the estimation of significance by Student's criterion have been calculated. An analysis of fruit and berry products elasticity in Ukraine shows that apples and pears can be considered as essential products, their income’s elasticity is positive worth less than 1.0. Other researched products (plum, cherry, and apricot) should be classified as luxury items regarding their income’s elasticity worth more than 1.0. An analysis of price elasticity shows that the Hicksian (compensated) personal elasticity is negative for all fruit and berry products worth less than 1.0 in modulus. That is, these are products whose purchases are virtually unaffected by fluctuations in their prices. In the structure of overall fruit and berry products in private households the share of apples is 45%, cherries is approximately 23%, plums is 15% with a tendency of its reduction, apricots is nearly 10% and pears is 7%. Complex research of the elasticity of demand for fruits and berries led to its scientific novelty. Elements of scientific novelty. The definition of indicators of price elasticity of demand for fruit and berry products in Ukraine has been proposed. Practical significance. The research approaches and results can be used in the development of marketing strategies and programs, especially in terms of economic crisis. Tabl.: 4. Figs.: 1. Refs.: 10.
Authors and Affiliations
Oleksandr Hrybynyuk, Maryna Lysak, Volodymyr Pugachov
Keywords
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