Expalin deatil report deamnd for vegetavles changes priceduring one week
Answers
The demand for fresh produce in the United States continues to increase yearly due, in large part, to consumer awareness about the linkages between diet and health. Per capita consumption of fresh vegetables increased roughly 12% between 1989 and 1999, compared to 9.9% for all fresh fruits and vegetables [1]. Rising incomes and the changing demographic makeup of the USA population has also contributed to increased demand for fresh produce. Studies have shown that consumption of fresh fruits and vegetables is positively correlated with incomes [2]. The demand for specialty and ethnic fresh fruits and vegetables is growing, spurred by increases in Hispanic and Asian populations, who tend to have more fresh-produce-based diets than the rest of the population. According to the USA Census Bureau [3], Hispanics and Asians combined now make up about 21% of the USA population, up from 16% in the year 2000. Estimates show that a typical Hispanic household spent about $408 on fresh produce in 1998, compared to $292 for a white household and $217 for an African American household [2].
A number of authors have estimated the demand elasticities for fresh vegetables in the United States. Notable among them are You et al. [4, 5] and Henneberry et al. [6]. You, Huang, and Epperson (hereafter YHE) used data on per capita annual consumption of eight fresh vegetables from 1960 to 1993 while Henneberry, Piewthongngam, and Qiang (hereafter HPQ) used data on consumption of fourteen major vegetables from 1970 to 1992. A considerable amount of health information has become available to consumers since these two studies were published. Consumers’ attitudes to consumption of fresh vegetables may have changed as a consequence of this health awareness. The current paper contributes to the literature by empirically determining what changing patterns have occurred in the demand for fresh vegetables. We achieve this by using an extended dataset over the period 1970–2010 to estimate the demand for fresh vegetables in the USA.
YHE [4] found that demand for major fresh vegetables in the USA was generally price inelastic over the period 1970–1993. Their study also found that “[t]he majority of the estimated cross-price elasticities were statistically insignificant, indicating that for the eight fresh vegetables studied, generally the demand relationship were neutral.” Expenditure effects were found to be highly elastic for five of these vegetables, with the exception of tomatoes, cabbages, and celery, which had insignificant or inelastic effects. YHE [5] found that demand for fresh fruits and vegetables responds significantly to changes in own-price, but not to changes in income. Thus, they concluded that income was not a significant determinant of consumer demand for fresh vegetables and fruits in the USA The current study presents evidence that these fresh vegetables exhibit more complementarities than previously thought, and that demand for these vegetables shows high responsiveness to changes in income, contrary to the findings of YHE [5].
The objective of the present paper is to analyze the effects of prices and expenditures on demand for fresh vegetables in the USA using more recent data. Estimates of price and expenditure elasticities are derived to investigate changes in demand and consumption patterns of major fresh vegetables consumed in the United States over the period of 1970 through 2010. Eight fresh vegetables, originally covered by YHE [4], including, cabbages, carrots, celery, cucumbers, lettuce, onions, peppers, and tomatoes are covered in this study. These eight account for about 80% of all fresh vegetables consumed in the USA Much like YHE [4] and HPQ [6], we apply the Linear Approximate version of the Almost Ideal Demand System (LA-AIDS) proposed by Deaton and Muellbauer [7] to estimate demand elasticities for these major fresh vegetables.
The link between diet and health has been the subject matter of intense research in the medical profession. Epidemiological studies have drawn links between the consumption of high fat diets and coronary heart diseases [8, 9]. On the other hand, it has been established that diets rich in fiber, such as fruits and vegetables, are negatively correlated with the risk of coronary heart diseases [10]. Since the 1990s a lot of health awareness information has become available to consumers, thus, changing their attitudes to consumption of fresh vegetables. Capps and Schmitz [11] study the impact of health and nutritional awareness on food demand in the USA They found that consumers do consider health and nutritional information, usually obtained from the news media and medical personnel, in their choice of diets, particularly, with regard to consumption of food that may be high in fat and cholesterol.
What you want to say I cannot mean that please put question again