An investigation on price elasticity of demand for protein consumption in Sylhet City, Bangladesh

Al Sayed, Md. Azim Uddin and Susmita, Das and Farjana, Akter and Nusrat, Akter (2019): An investigation on price elasticity of demand for protein consumption in Sylhet City, Bangladesh.

Abstract

The study was carried out to measure the price elasticity of protein consumption in Sylhet City, Bangladesh. The objective of this study is to find out how people's protein consumption response with price changes. From various sources of proteins, 4 items (beef, chicken, egg, and milk) were selected to measure the protein intake of households. Simple random sampling was used to select four wards and households in the study area. A total number of 67 households were used for conducting the survey. The study is analyzed using descriptive statistics. The elasticity equation is used to measure the responsiveness between protein consumption and price changes. The correlations between income, household size, and protein consumption are also demonstrated here. The article is also discussed about the substitute goods which are replaced by household in case of price change. From the study, it is found that total protein consumption is negatively related to price and positively correlated with income. Protein consumption also depends on the size of the household and both are positively correlated. Among four protein sources, beef and milk are highly price elastic than chicken and egg. The elasticity of beef, chicken, egg, and milk are -2.43, -1.78, -1.72 and -2.14 respectively. Around 53.7 percent of households substitute fish, pulse, vegetables or other goods with those goods when the price increased. Again it is also showed that protein consumption varied with income level changes. Moreover low-income household is more responsive with price changes than high-income household.

• Item Type: MPRA Paper
• Language: English
• Keywords: Household, protein, price elasticity, income, consumption
• Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis

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