Price Elasticity Study and Comparison between Agricultural and Fishery Products

Abstract

Amid an economic downturn, a complex and volatile domestic and international environment, and pressure on economic growth, the development of the agricultural and aquatic products industry has been hampered in many ways. Against this background, it is important to further analyze and understand the nature and characteristics of price elasticity and demand influencing factors of different agricultural and aquatic products to maintain the normal operation of their industries. In this paper, linear regression and price elasticity of demand formulae are used as the two most important methods. Linear regression is used for the derivation of the demand function and the analysis of the factors influencing the demand. The price elasticity of demand formula is used to calculate the price elasticity of different agricultural and fishery products and subsequent analyses. It was found that the differences in price elasticity and quantity demanded for agricultural and fishery products have different implications for firms, consumers, and farmers. The price elasticity of agricultural products is generally higher than that of aquatic products, and according to the different price elasticity characteristics, firms can adjust their business strategies, consumers can estimate and optimize their expenditures, and farmers can plan their production and planting. At the same time, because the demand for products is affected by price, season, and precipitation, different groups can give different feedback on the same products according to the season and precipitation.