Question

estimates of the price elasticity of demand for at least three different products or services. The estimates must be from three different articles with a publication date of 2017, 2018 or 2019. Provide complete references for the sources that you have used. Comment on the magnitudes of these estimates in relation to the standard economic determinants

Answer 1

1. The price elasticity of demand for soft drinks in U. K. in 2017 was estimated to be - 1.37. This means a 10% increase in price of soft drinks resulted in a 13.7% reduction in its demand,therefore, sof drinks are price senstive (elastic).

Source: Guerrero-López, C.M., Unar-Munguía, M. & Colchero, M.A. BMC Public Health (2017) 17: 180.

https://doi.org/10.1186/s12889-017-4098-x

2. The price elasticity of demand for cigarettes in Uganda in 2018 is between -0.26 to -0.33. This means that a 10% increase in price of cigarettes leads to a reduction in demand for cigarettes between 2.6% to 3.3%. The demand is price inelastic.

Source: Chelwa G, van Walbeek C

Does cigarette demand respond to price increases in Uganda? Price elasticity estimates using the Uganda National Panel Survey and Deaton’s method

BMJ Open 2019;9:e026150. doi: 10.1136/bmjopen-2018-026150

3. The price elasticity of demand for Saudi oil exports im 2019 is -0.28. This means a 10% increase in oil prices leads to a 2.8% reduction in demand for its oil exports.

Source: https://www.env-econ.net/2019/01/an-estimate-of-the-demand-elasticity-of-saudi-oil-exports.html