Rice Consumption Patterns and Quantity Demand Elasticities

This paper explores rice consumption patterns of Thai households and estimates income and price elasticities of quantity demand. The study found that the average annual consumption of rice for Thai households was 101 kilogram per person. The income elasticity of quantity demand is positive and inelastic (close to zero). The households in urban areas tend to have less income elasticity than those in rural areas. The households in the highest income rank of 25% had negative income elasticity. This indicates that rice is an inferior good for this income group. The result also shows that the price elasticity of rice demand is inelastic and corresponds with the law of demand.