The Economics of Tea and Coffee Consumption in Australia

M.A. B. Siddique


Demand for non-alcoholic beverages (NAB) in Australia is analyzed for the period 1964-89, with the use of consumption theory. The study's findings, which generally support those of earlier studies, suggest that demand for NAB is price-inelastic. A comparison of income elasticities further suggest that tea is an inferior good, coffee a necessity, and softdrinks, a luxury.

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