THE INFLUENCE OF TRANSPORTATION ON THE PRICES OF CONSUMABLE COMMODITIES
CHAPTER ONE
THE STUDY'S BACKGROUND
The current situation of continuous rise in prices of consumable products throughout the country is well known to the populace, and thus price increases have affected individuals in a variety of ways. The factors influencing these price increases in consumer goods are both human and natural.
First and foremost, the prices of consumable products can be extremely high due to human behavior influences. For example, if many middlemen participate in the commodity's distribution, the price of consumables will be high. It has also been demonstrated that production costs are directly related to the price of goods after every producer has a duty not only to recover investments but also to maximize profit.
Second, the prices of goods can be attributed to natural causes that are beyond man's control. For example, a period of unfavorable weather with heavy rainfall will almost certainly result in low output. As a result, the supply of consumable products is reduced, and their prices are affected. As a result, it is obvious that the price of goods is an inverse proportion of the market supply.
Aside from the factors mentioned above, other factors such as transportation costs, labor, and, in general, all precautionary factors account for the significant increase in the prices of consumable products. All of these costs are added to the true cost of the product to inflate or raise the price.
As a result, it follows that when the prices of these factors rise, the prices of production will rise as well, and vice versa.
The primary concern in this research is transportation. The price effects of transportation, how does a poor transportation system affect the prices of consumable commodities? Also, what effect does distance have on the relative prices of these commodities that are transported? Does a good transportation system affect the prices of consumer goods in any way? This study's context is formed by the questions raised above.
THE STUDY'S OBJECTIVES
The purpose of this research is to examine the effects of transportation on the relative prices of a few selected products in Oredo L.G.A., Edo State.
This research will also focus on the relationship between transportation and the cost of consumer goods in this local government area.
This study will also attempt to demonstrate the effects of these high prices on those involved in the consumption of gods (the consumer).
Finally, to emphasize and recommend a solution or remedy to combat such price increases.
HYPOTHESIS
a. High transportation costs have an impact on commodity prices in Oredo L.G.A., Edo State.
b. High transportation costs have little impact on commodity prices in Oredo L.G.A. of Edo State.
THE STUDY'S OBJECTIVE
This study's scope includes the current state of the relationship between prices and transportation costs.
According to Oredo L.G.A. of Edo State, the methods by which goods are transported from production centers to various markets will be restricted. With special emphasis on the headquarters (Benin City) and surrounding communities such as Iguosa, Egor, Ekiadolor, and others.
At the very least, five food crops would be considered: yam, rice, plantain, cassava, and tomatoes. The study will look at the effects of transportation and how these prices affect consumers, as well as possible solutions or remedies to this problem.
METHODOLOGY
This research will be conducted using a questionnaire as well as a visit to the market. The cost of transportation from neighboring communities to Benin's main market would be considered.
This study would make use of available textbooks and published materials (both economics).
OBJECTIVE OF THE STUDY
This study will make a significant number of contributions. In the first instance, the study will clearly demonstrate how transportation costs affect the prices of precut consumables. It will also demonstrate the various modes of transportation available in Oredo L.G.A., as well as the issues associated with them.
The government, for its part, has been insensitive to transportation issues in most local government areas, resulting in a poor transportation system. As a result, the relative price of consumable products has risen.
In conclusion, a critical examination of all of the points raised will assist the government in examining the problems of inadequate and inefficient transportation systems, particularly in rural areas, and identifying potential solutions to improve the situation.
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THE INFLUENCE OF TRANSPORTATION ON PRICES OF CONSUMABLE COMMODITIES