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Abstract

In this study, both the Rotterdam model and the double logarithmic model were used to estimate the demand parameters for fruit beverages. The results show that: (1) under the conditions of block-independence and predetermined price changes, the Slutsky matrix for fruit beverages is symmetric and negative definite; (2) own-price elasticity estimates from both models are about the same; and (3) income elasticity estimates and cross-product relationships from the two models are not compatible.

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