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Householdsäó» Choices Among Fluid Milk Products: What Happens When Income and Prices Change?
Diansheng Dong (au); Hayden Stewart (au)
Households have several ways to economize on their purchases at retail food stores when prices increase or their incomes fall. This report investigates a householdäó»s choice among retail ¥åuid milk products categorized along three dimensions: three levels of fat content, two levels of package size, and organic versus conventional methods of production. Nielsen Homescan data from 2007-08 are used to estimate a choice model, which accounts for price, income, and other choice determinants. Results show that small changes in prices and income have a modest impact on a householdäó»s choice among milk products. However, households mitigate the impact of more substantial price and income shocks by switching from more expensive to less expensive products. The authors also ¥ånd that the demand for organic milk is more sensitive to swings in income and food prices than is demand for conventional milk. Tables and figures. This is a print on demand report.
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