Abstract :
This study aims to determine the effects of income and price changes on consumption pattern of rice in Shiraz city. To achieve this objective, quadratic almost ideal demand system was used. Different varieties of rice, including Pakistani, Indian, Thai, and domestic rice (Tarom local, Daylamani Tarom, Amol 3, Fajr, Aurora, Kadvs, Caspian) were considered. Findings of the study showed that various varieties of domestic rice were substitutable, and also imported varieties of rice were substitutable, while relationship between domestic and imported rice was complementary. Consumers demand is related to their tastes and purchasing power. Analysis of demand indicated that people with the high income prefer to buy domestic rice, while low income consumers prefer to buy imported rice mainly due to its low price.
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