This study examines the implications of agricultural price changes on households’ welfare in Tanzania using panel survey data from 2008 to 2015. Specifically, the highlight is made to unpack the decision dilemma on whether household preference is skewed to either lower or higher prices of agricultural produce. This is achieved by providing empirical evidence on the effect of the experience of lower and higher prices of agricultural products on households’ welfare using the response approach that accommodates the joint decisions of the households regarding consumption, production, and labour market.
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