vs -1.48). Theoretically these differences are difficult to explain because yellow vegetables are
such a small share of total produce consumption for both groups. But given the limited
selections and the near uniformity of yellow vegetables, the results suggest that both groups are
responding to the same group of commodities and to the same set of prices. Indeed these factors
result in both groups paying statistically identical prices.
Summary and Conclusions
A key objective of this study was to determine if higher- and lower-income consumers
show similar or dissimilar own-price elasticities for fruit and vegetables. To accomplish this
objective, a time series cross-section model was specified and estimated for 14 sub-categories of
produce across 6 cross-sections and over 69 weeks. The results showed lower-income
consumers to have a more elastic demand for six of eight sub-categories of fruit and two of six
sub-categories of vegetables. Own-price elasticities were shown to be identical for all but one
remaining sub-category, fresh-cut fruit. Price was not a statistically significant determinant of
consumption for fresh-cut fruit and this finding is attributed to its relatively small share of total
produce consumption. A contributing factor to its small share is the sale of specially ordered
fruit trays through the deli department as opposed to the produce department. But even if all
specially-ordered fresh-cut fruit were sold as produce, it is still possible that price would be an
insignificant determinant of consumption because consumers are known to be less price-sensitive
toward purchases made for special occasions.
A finding more revealing than the estimated differences in own-price elasticitiies was the
observed differences in prices paid by the two income groups. Lower-income consumers almost
invariably paid lower per unit prices. Perhaps product preferences played some role in effecting
these outcomes, but it seems plausible to conclude that income constraints played a larger role in