ABSTRACT
In this study of this research work is to examine the influence of transportation on price of consumable commodities. A case study of selected commodities market in Benin City Edo state. To achieve the goals, the techniques used in getting these information were based on primary data used included personal interviews at the local markets. While secondary sources of information centred on available materials gotten from textbooks, journals, magazines etc. Data collected from people in the locality were carefully analyzed using the percentage ratio to evaluate them and the last chapter where the study was concluded and recommendation were made.
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
The present day condition of the continuous rise in prices of consumable product all over the country are well known to the populace and thus, price increases has affected the individuals in several ways. The factors, which affect these price escalations of consumables products, are both human and natural factors. In the first place, the prices of the consumables products ca be highly due to the influences of human behaviour. For example, the price of consumables products will be high if may middle men partake in the process of distribution of the commodity. Also, it has been proved that production cost is a direct valuable an the price of goods after every producer, has a duty of not only to recover investments but also to maximize profit.
Secondly, the prices of goods can also be attributed to natural reasons, which are beyond the control of man. For instance, a period of unpleasant weather of heavy rainfall will definitely result to low production output. Thereby leading to a reduction in the supply of consumable product and consequently affects their prices. It is clear therefore that price of goods is an inverse proportion of the market supply. Apart from the factors mentioned above, other factors such as transportation cost labour and in fact all the factors of precaution account for the high increase in the prices of consumables products. The cost of all these are added to the real cost of the product to inflate or increase the prices. Hence, it implies that when the prices of these factors increase, indirectly the prices of the production will definitely increase and vice-versa. In the course of this research, the main concern is transportation. The effects of transportation on prices, how does bad transportation system affect the prices of consumable commodities? Also what relationship has distance with these commodities that are transported, have on the relative prices of each products? Does good transportation system reduces the prices of consumables products in anyway? These questions above form the background of this study.
AIMS OF THE STUDY
The objective of t his study is to analyzed the effects of transportation on relative prices of some selected products in Oredo L.G.A. of Edo State. This study will also highlight on the relationship between transportation and the price of consumables products in this local government area. Also, this study will also try to show the effects of this high prices on those that are involved in consuming the gods (the consumer). Finally, to highlight and suggest solution or remedy to combat such price increase.
