ISSN: 2695-2122                          e-ISSN: 2695-2114

VOLUME 2 ISSUE 2, PUBLISHED SEPTEMBER 2020

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Effect of Price on Consumer Preference for Short and Long Grain Local Rice in Benue State, Nigeria

 Dauda, S. N., Yunusa, B. J., Bello, O. L., Opaluwa, D. and Ocheni, B. A.

 

Crossref DOI:  https://doi.org/10.35849/BJARE202002012

BADEGGI JOURNAL OF AGRICULTURAL RESEARCH AND ENVIRONMENT, 2020, 02(02), 97 – 103

 

Keywords

Keywords: Consumer preference, Elasticity, Local rice, Normal goods, Price

View Abstract

The research assessed the impact of price on consumer preference for short and long grains local rice quantity demanded and expenditure share. Multistage sampling method was used to select 156 household consumers. The respondents were sampled from the Local Government Areas of the three (3) Agricultural Zones of Benue State, Nigeria. Primary data were drawn through the use of structured questionnaires. Linearized Almost Ideal Demand System (LA/AIDS) was used to estimate the expenditure share, compensated and uncompensated price elasticity. The results showed that increase in the price of short grain rice reduced household expenditure share of short grain and vice versa for long grain. Both long and short grains local rice were normal goods and expenditure inelastic. The inelastic nature showed that the quantity of local rice demanded changed as the prices increased or decreased during the study.

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