The purpose of this paper is examines the domestic consumer behavior to income changes, floor coverings price (calculated income elasticity, price elasticity and cross-elasticity), handmade carpets and of carpet by machinery.
The results of the models using OLS method in the 1984-2010 shows that Both handmade carpets and carpet by machinery floor covering products are elastic goods; although, carpet by machinery is more elastic than handmade carpets. This implies that the reaction of consumer's carpet by machinery greater than consumer's handmade carpets (assuming an identical change in the price of both flooring). Due to the cross-elasticity values obtained, in the estimated domestic demand for handmade carpets, the carpet by machinery, rugs and moquette, ceramic tiles are the stronger substitutes for handmade carpets.
Due to the cross-elasticity values obtained in the estimation of demand functions for carpet by machinery, the ceramic tile, handmade carpets and rugs and moquette, carpet by machinery are stronger substitutes. With respect to the values obtained in the estimation of income elasticity of demand functions, both handmade carpets and carpet by machinery are luxury goods; although the income elasticity of handmade carpets, is more than the income elasticity of carpet by machinery.
