Price Elasticity of Demand for Socially Significant Goods
DOI:
https://doi.org/10.5377/reice.v12i23.18287Keywords:
Socially Significant Goods, Basic Goods, Essential Goods, Price Elasticity of Demand, Government RegulationAbstract
The article considers the price elasticity of demand for three groups of goods with different social significance, according to official statistics of Russia. The estimation is based on an econometric regression model using panel data. The authors have concluded that the price elasticity of demand does not identify socially significant goods for which prices are free market. Without government support measures, such goods have become the main object of speculative market transactions in retail trade. The results obtained confirm the need to further control prices for socially significant goods by the state, including those not included in the official list. In addition, it is necessary to establish a requirement for the mandatory availability of such goods for sale, which will ensure the stability of sales volumes regardless of unfavorable price dynamics. The results can be used in the development of state regulation measures for the consumer market and socially responsible trade organizations when forming an assortment and pricing for socially significant goods.
Keywords: Socially Significant Goods, Basic Goods, Essential Goods, Price Elasticity of Demand, Government Regulation.
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