WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 22, 2025
Evaluating the Sensitivity of Consumption towards the Price of Components of the Consumer Basket
Authors: ,
Abstract: This study investigates Jordanian market demand in terms of consumption sensitivity to changes in consumer basket component prices. The researchers anticipate that the study, through analysing demand functions and elasticities, will help to add qualitative insights to the Jordanian economic database. The researchers statistically derived coefficients based on information about the consumer basket used to calculate the standard price index using simple linear logarithmic regression. Using this methodology, the research study has produced several findings, including: There are two types of consumer basket components: elastic and inelastic. A strong divide occurs at the level of the consumer basket between critical first-tier goods and second-tier consumer goods. Consumption sensitivity assessments can influence governmental decisions about tax policy as well as businessmen decisions regarding production volume and output capability. The price elasticity of demand for chickpeas, cakes, green olives, black olives, and kerosene is 5%, 17.8%, 6.9%, 3.7%, and 1.2%, respectively.
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Keywords: Consumer Basket, Consumption Sensitivity, Economic Decision, Tax Policy, Simple Linear Regression
Pages: 168-171
DOI: 10.37394/23207.2025.22.16