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Abstract
This study used least squares regression techniques to estimate the
demand for fresh choice beef in the U.S., 1950-1978. From the demand
equation, estimates of price, income and cross elasticity of demand were
derived. An objective was to determine if elasticity of demand has been
decreasing. Problems with pooling of data, serial correlation and
multicollinearity were dealt with. Estimated price elasticity of demand was
found to be - .62. When this figure was compared to results of other studies
(with the consideration that different estimating techniques and time
periods were used) it was judged that elasticity of demand for fresh choice
beef in the U.S. probably had declined between 1950 and 1978.