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Abstract

This note discusses aspects of carbohydrate consumption, prices of carbohydrates and interdependence in the carbohydrate market. Knowledge gained is used to analyse the effects of relative prices and income on the consumption of different carbohydrates in South Africa. Price and income elasticities of demand estimated by the traditional single equation approach and a systems method do not differ markedly. However, because of the interdependence between carbohydrate consumption, the systems method seems to be more appropriate than the traditional single equation approach. Relative prices of carbohydrates and income per capita play a major role in influencing the consumption of different carbohydrates.

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