Some elasticity estimates for milk and egg for urban sector of Bareilly district (U.P.)
Central Avian Research Institute, Izatnagar - 243 122
Elasticity, the responsiveness of a variable to a change in another variable, is important in many areas of economics and there are many applications of elasticity concept. Therefore, present study was under taken to estimate expenditure elasticity (quantity elasticity, value elasticity), quality elasticity and income elasticity from the family budget data collected by interviewing 200 urban households of Bareilly district selected through multistage stratified random sampling technique. The value, quantity, quality and income elasticity estimates were 1.10, 0.82, 0.28 and 0.87 respectively for milk and 0.93, 0.89, 0.04 and 0.81 respectively for egg. These estimated values suggested that both milk and egg are the goods of conventional necessity for urban consumers of the district. Furthermore, an increase in total expenditure (income) would result an increase in expenditure on milk and egg, and also the increase in quantity of milk and number of egg being consumed. It was further, noted that an increase in total expenditure (income) would contribute towards improvement in quality of milk being consumed.