CONSUMERS’ REACTION TO CHANGES IN THE PRICE OF RICE IN UYO, NIGERIA
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Abstract
In this paper, we examined how consumers react to the increase in the price of rice in Uyo, Akwa Ibom State. The study considered three markets: Akpan Andem, Anua, and Etuk Markets and the survey research design was adopted. A total of 156 respondents were drawn for the study, out of which 60 were from Akpan Andem Market, 56 from Anua Market, and 40 from Etuk market. The Panel Generalized Method of Moments was used in the estimation of the rice demand function. From the responses, the key influential factors to consumers’ demand for rice were price and quality. From the estimated model, price exerted a negative and significant effect on rice demand while income and population exerted negative and significant effect. Based on the findings, the study recommended empowering farmers in the rice production and putting up measures to check the unscrupulous activities of middlemen in the rice market.
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