Impact of price and other factors on tea in Bangladesh: sources of variation and disparity over division

Abstract

Tea is a beverage made by steeping leaving in boiling water. Tea is the most popular and cheapest beverage next to water in the world. It is consumed by a range of age groups in all levels of society. An attempt has been made in this research to analyze the price elasticities of most exportable crops in Bangladesh: sources of variation and disparity over the division. In investigating the impact of price and other factors on the supply of tea, the Cobweb supply model in a modified form has been considered. The supply price elasticities have also been estimated. The Ordinary Least Squares (OLS) method has been used to estimate the model. The study is based on time series data over 12 years (BBS: 1985/86-1996/97).