The Demand for Chicken, a Proposal
THE MONTHLY DEMAND FOR CHICKEN
IN A RURAL VS AN URBAN AREA
IN GUYANA
A PROPOSAL
INTRODUCTION
The demand for chicken refers to the quantity of chicken demanded by households (in lbs) in the identified areas (one rural and one urban), at the available prices within the specified areas. It must be noted at this point, that the true population in any given situation is never really known. As such samples are usually collected and estimated using econometric methods. The results are then used to infer or make judgments about the true population.
Basically, econometrics is based on economic theory, mathematical economics and statistics. Where the relationships among variables are measured using numerical values and estimates are then interpreted. This assignment has been embarked on to apply the theoretical knowledge learnt in the classroom to real world situations using actual data. I.e. the quantity of chicken demanded (dependent variable), subject to constraints such as the selling price of chicken, available substitutes, etc.
In doing an econometric research, there are four stages. These stages are 1. Specification of the model. 2. Estimation of the model. 3. Evaluation of the estimates. 4. Evaluation of the model.
These steps will be further explained in the proposal.
REVIEW OF LITERATURE
This comprises of two parts; 1. The general theory of demand 2. Previous models done and comparisons.
Theory of Demand
A fundamental characteristic of demand is…[1].”All else equal, as price falls, the quantity demanded rises, and as price rises, the quantity demanded falls.” What this implies is that there is a negative or inverse relationship between price and quantity demanded. However, price is not the only factor that affects or determines the quantity of a product demanded. Other factors such as the taste and preferences of consumers, the prices of related goods, number of buyers in the market, changing
IN A RURAL VS AN URBAN AREA
IN GUYANA
A PROPOSAL
INTRODUCTION
The demand for chicken refers to the quantity of chicken demanded by households (in lbs) in the identified areas (one rural and one urban), at the available prices within the specified areas. It must be noted at this point, that the true population in any given situation is never really known. As such samples are usually collected and estimated using econometric methods. The results are then used to infer or make judgments about the true population.
Basically, econometrics is based on economic theory, mathematical economics and statistics. Where the relationships among variables are measured using numerical values and estimates are then interpreted. This assignment has been embarked on to apply the theoretical knowledge learnt in the classroom to real world situations using actual data. I.e. the quantity of chicken demanded (dependent variable), subject to constraints such as the selling price of chicken, available substitutes, etc.
In doing an econometric research, there are four stages. These stages are 1. Specification of the model. 2. Estimation of the model. 3. Evaluation of the estimates. 4. Evaluation of the model.
These steps will be further explained in the proposal.
REVIEW OF LITERATURE
This comprises of two parts; 1. The general theory of demand 2. Previous models done and comparisons.
Theory of Demand
A fundamental characteristic of demand is…[1].”All else equal, as price falls, the quantity demanded rises, and as price rises, the quantity demanded falls.” What this implies is that there is a negative or inverse relationship between price and quantity demanded. However, price is not the only factor that affects or determines the quantity of a product demanded. Other factors such as the taste and preferences of consumers, the prices of related goods, number of buyers in the market, changing