Demand Elasticities for Fresh Vegetables in the United States

Demand elasticities at retail level for eight major fresh vegetables in the United States were estimated with the Almost Ideal Demand System using annual data over the period 1960-1993. Results show that the demand for fresh vegetables was generally inelastic with respect to changes in own prices, and cross-price effects for most fresh vegetables were negligible. Furthermore, the study suggests demands for carrots, cucumbers, lettuce, peppers, and onions were highly elastic with respect to changes in expenditures on fresh vegetables. However, expenditure elasticities for celery and tomatoes were found to be inelastic, while the expenditure elasticity for cabbages was negative but statistically insignificant.