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Journal of Applied Sciences and Environmental Management
World Bank assisted National Agricultural Research Project (NARP) - University of Port Harcourt
ISSN: 1119-8362
Vol. 24, No. 8, 2020, pp. 1403-1408
Bioline Code: ja20204
Full paper language: English
Document type: Research Article
Document available free of charge

Journal of Applied Sciences and Environmental Management, Vol. 24, No. 8, 2020, pp. 1403-1408

 en Econometric Analysis of the Effect of Changes in Price on Consumption Pattern of Petrol, Rice and Bean in Owerri City, Imo State, Nigeria
NWOSU, UI & VINCENT, U

Abstract

It was hypothesized that changes in price could affect the consumption pattern of petrol, rice and bean, their status as basic needs notwithstanding. To test this hypothesis, primary data were generated, subjected to econometric model and analyzed. Two-hundred residents of different income groups who live in Owerri city, Imo State, Nigeria and have used petrol, rice and bean for at least ten years and were not less than thirty-one years old were sampled using standard method. The pretest result of questionnaire validity and reliability was r = 0.726 and this indicates high reliability. A total of 90% strongly agreed and agreed that prices of petrol, rice and bean are unstable in Owerri City, Imo State, Nigeria. The results indicate that 70% of the consumers strongly agreed and agreed that price affects consumption of the products irrespective of need. This was a significant observation too. In the study, availability of petrol, rice and bean affected consumption in an urban environment.Grain quality was found a strong determinant of consumption of rice and bean in the city. There was a positive and non-significant relationship between price and consumption of petrol, rice and bean and this shows that price is not the most important determinant of consumption of all commodities. Necessity was more important than price in consumption of petrol, rice and bean in the city of Owerri, Imo State, Nigeria. These findings are useful to econometricians, policymakers, governments and households.

Keywords
Basic needs; Econometric model; Income groups; High reliability; Grain quality

 
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