Abstract
Elasticity is a measure that shows how strongly buyers and sellers respond to changes in market conditions. Price elasticity of demand for eggs in Lithuania and Ukraine is presented in this work.
While measuring price elasticity of demand for eggs in Lithuania and Ukraine, statistical data from 2003-2018 gathered by Statistics Lithuania and State Statistics Service of Ukraine was used. Data analysis, comparison and generalization were among the methods used. The annual coefficient of price elasticity of demand for eggs was calculated using the midpoint formula. An average, multi-annual coefficient of price elasticity of demand for eggs was calculated using the median. To demonstrate the results visually, the graphs below were used.
It was established that in 2003- 2018, fluctuation in the retail prices of eggs occurred both in Lithuania and Ukraine. In Ukraine it was clearer. During the period under investigation, the tendency to an increase of retail prices prevailed. To compare 2018 to 2003, the retail price of eggs in Lithuania increased by 1,9 times, and in Ukraine by 4,5 times. Despite a rapid increase in price, in 2003-2018 eggs were cheaper in the Ukrainian retail market. The analysis of demand for eggs in Lithuania and Ukraine showed that customers reacted to the fluctuation in prices for just a short period of time. When the price of eggs increased, the consumption of eggs decreased; later, however, despite a further increase in price, usage was to return to the previous level. Based on the data showing prices and usage, the coefficients of price elasticity of demand for eggs in Lithuania (0,28) and Ukraine (0,35) were calculated.
The study shows the hypothesis, that in Lithuania and Ukraine the demand for eggs is price inelastic, to be true.
Petrauskaitė-Senkevič, L. 2020. Comparison of price elasticity of demand for eggs in Lithuania and Ukraine. Ukrainian Journal of Food Science. Vol. 8, Issue 1. p. 137–146. ISSN print 2310-1008. ISSN online 2409-4951; DOI: 10.24263/2310-1008-2020-8-1-13; [FSTA - Food Science and Technology Abstracts; Academic Search Research and Developement (EBSCO); Index Copernicus].