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These groups then represent areas within which there
1S still regional difference in the level of demand (as
analysed before in Section II) but within which price and
income elasticity is fairly uniform. Between the groups,
however, not only is there regional difference in the level
2
of demand but. also in the elasticity of demand.
Fresh analyses were then conducted for each of these
groups to establish the size of the elasticities and the
results of these are shown in Table II for lamb and mutton.
The figures in this table should be interpreted as
follows: Taking group 3 as an example, the elasticities
of demand for lamb and mutton with respect to the prices
shown and with respect to income, are as shown by the first
four figures. The seasonal coefficients give the deviation
of demand (from the first and fourth quarters of the year)
which occurs in the second and third quarters, and the three
regional coefficients give the deviation of demand (from
that in South Eastern & Southern) occurring in each of the
three other individual regions making up the group.
The important conclusion from Table II is that there
are quite significant differences in the own price elasticity
for lamb and mutton between these groups of regions.
The own price elasticity of demand, -0.86 in London,
rises to -1.19 in Scotland. The income elasticity which
in the London region could not be detected and is therefore
presumed to be near zero, is as high as 1.32 in scotland
and at an intermediate level of 0.68 in Regional Group 3.
1 In testing these differences we tested own price, cross
price, income elasticities, and seasonal effects.
11