DATA RELATED TO SOYBEAN OIL

Domestic Price of
Price of Price of Spices
Consumption Per Capita Sunflower Oil
Market Year Soybean Seed (Complement
of Soybean Income (Substitute
Oil Commodity)
Oil Commodity)

1972 75 699 99.7 288.5 91.3

1973 22 750 96.4 280.5 92.7
1974 7 903 99.7 269.2 93.7
1975 62 1034 103.2 272 94.3
1976 460 1065 97.1 286.3 96.3
1977 487 1121 97 291 97.4
1978 586 1258 98.9 302.1 98.4
1979 683 1316 110.4 203.3 98.9
1980 708 1390 111.4 272.8 98.9
1981 553 1630 113.2 260.2 99.4
1982 543 1861 97.5 222.6 99.7
1983 763 2004 143.8 300.3 103.5
1984 577 2304 109.9 248.7 98
1985 466 2504 88 274.6 104.8
1986 445 2730 87.1 222.6 105.3
1987 621 2962 130.5 300.3 100.1
1988 407 3285 111.1 248.7 100.6
1989 340 3842 108.2 274.6 101.7
1990 445 4247 96.7 203.3 102.3
1991 425 4983 140.1 272.8 102.3
1992 562 5603 122.8 260.2 102.7
1993 711 6255 110 274.6 101.4
1994 555 7690 115.4 104 103.6
1995 772 8857 95.2 118.7 103.5
1996 706 10149 97.1 124 106
1997 1095 11564 116.4 120.6 101.2
1998 1805 12707 125.5 126.6 105.4
1999 1300 14396 106.4 142.4 107.5
2000 1750 15625 85.1 104.9 108.3
2001 2000 16688 88 118.6 100.3
2002 1850 17782 135 150.4 98.2
2003 1700 18885 138.1 162.9 98
2004 2400 20871 138.2 161.5 99.6
2005 2650 23198 128.4 155 101.5
Page | 1
2006 2450 27131 140 155 104.3
2007 2100 31206 153.8 168.8 105
2008 2300 35825 148.1 214 106.2
2009 2750 40775 142.6 222.4 100.5
2010 2550 46249 117.5 194.1 99.1
2011 2900 54021 140.1 126.4 94
2012 3000 61855 154.5 134.7 100.6
2013 3350 67839 158.7 132.8 102.7
2014 4100 74380 158.4 127.9 111
2015 5250 86647 151.2 124.9 111
2016 5150 94797 150.4 134 132.9
2017 4670 104659 161.7 102.5 139.6
2018 4750 114958 112.6 107.4 137.5
2019 5100 126406 112.5 108.7 139.4
2020 5327 135050 118.2 115.1 150.9
2021 5450 128829 161.9 172.4 164.4

Page | 2
 REGRESSION ANALYSIS

Coefficients
Intercept 1065.66862
0.03646656
Per Capita Income 1
10.0949024
Price of Soybean Seed Oil 4
-
Price of Sunflower Oil (Substitute 3.57301897
Commodity) 2
-
8.05781246
Price of Spices (Complement Commodity) 6

Demand Function:

C.G = f(PCI,PG,PS,PC)

Consumption of Soybean Oil = FUNCTION( Per Capita Income, Price of Soybean Oil, Price of
Sunflower seed oil {substitute}, price of Spices {Complementary}

C.G.= 1065.66 + .0365*PCI + 10.1*PG -3.57*PS – 8.06*PC -------- DEMAND FUNCTION

C.G. = 1065.66 + .0365*128829 + 10.1*PG – 3.57*172.4 – 8.06*164.4

C.G. = 1065.66 + 4702.25 + 10.1*PG – 615.46 – 1325.06

C.G. = 3827.39 + 10.1*PG or PG = .099*C.G. – 378.95

Here we get: dq/dPG = 10.1

Price Elasticity:
(dq/dPG) x (PG/Q) = 10.1 *(161.9/5450) = .3

Price Elasticity = .3

Inference: Since value of Price elasticity is less than 1 and positive. With
decrease in price the demand rises.

Page | 3
Income Elasticity:
(dq/dPCI) * (PCI/Q) = .036*(128829/5450) = .85

Income Elasticity = .85

Inference: Since income elasticity is less than 1 and positive. This commodity is
a necessity

Cross Elasticity:
(dq/dPS)*(PS/Q) = -3.57*(172.4/5450) = - .11

Cross Elasticity = - .11

Inference: Since Cross Elasticity is less than 1 and negative. Both items are
compliment.

Total Revenue:
Total Revenue = PxQ = (.099*C.G. – 378.95)(C.G.)

= .099*C.G^2 – 378.95*C.G.

= .099*(5450)^2 – 378.95*(5450)

= Rs. 87,52,270

Average Revenue = (PXQ)/Q = P = (.099*C.G. – 378.95) = Rs. 160.6

Marginal Revenue = d(TR)/dQ = .198*C.G – 378.95 = Rs. 700.15

Page | 4
Page | 5