Table 2

Table 2 Comparison of growth of demand for agricultural commodities, at different stages of development (hypothetical cases).

Levels of development Percentage of population in agriculture Annual rate of population growth Annual rate of income growth Income elasticity of demand Annual rate of growth in demand¹

Very low income 70 2.0 .5 1.0 2.5

Low income 60 3.0 1.0 .9 3.9

Medium income 50 3.0 3.0 .6 4.8

High income 25 2.0 4.0 .5 4.0

Very High income 10 1.0 3.0 .2 1.6

Highest income 5 0.1 2.0 .1 0.3

¹The total annual rate of growth in demand is the sum of the population effect and the income effect. The income effect is calculated by multiplying the income elasticity of demand by the rate of income growth.

Back

Table 2 Comparison of growth of demand for agricultural commodities, at different stages of development (hypothetical cases).
Levels of development	Percentage of population in agriculture	Annual rate of population growth	Annual rate of income growth	Income elasticity of demand	Annual rate of growth in demand¹
Very low income	70	2.0	.5	1.0	2.5
Low income	60	3.0	1.0	.9	3.9
Medium income	50	3.0	3.0	.6	4.8
High income	25	2.0	4.0	.5	4.0
Very High income	10	1.0	3.0	.2	1.6
Highest income	5	0.1	2.0	.1	0.3
¹The total annual rate of growth in demand is the sum of the population effect and the income effect. The income effect is calculated by multiplying the income elasticity of demand by the rate of income growth.