An Analysis of Fresh-Vegetable Consumption in the Dallas-Fort Worth Metropolitan Area
Keywords:demand system, disagregated analysis, elasticities, fresh vegetables
AbstractThis study estimates expenditure and price elasticities using home-scan fresh-vegetable consumption data from the Dallas-Fort Worth metropolitan area, the largest market in Northeast Texas. As vegetable consumption and production increases, it is critical for vegetable growers to keep up with production and consumption trends and recent substitution patterns. The study analyzed how various fresh vegetables perform at the retail level and found that consumers are not only responsive to changes in own-prices but also responsive to prices of other vegetables, and that own-price elasticity estimates seem to be more inelastic when fresh vegetables are sold by ounce than by count. The study may assist local producers identifying highly marketable fresh produce in the DFW metropolitan area and provide insight in assessing market profitability.
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