This paper examines the relationship between the income to poverty ratio and time constraints on coffee consumption and how that relationship may differ depending on the source of the coffee. Literature helps establish that coffee is an inelastic normal good and implies that there is an association between increases in income and increases in coffee consumption. Additional research shows that changes in time constraints, such as hours worked or number of children, may affect where people may get their coffee. However, there are mixed results on the relationship between coffee consumption and changes in income. This paper uses a log-linear regression model, and it was found that there is a statistically significant relationship between income and at home coffee consumption. However, the relationship is negative, implying that increases in the income to poverty ratio lead to a decrease in the quantity of coffee consumed at home. Contrary to this, there was no evidence to prove a significant association between income and away from home coffee consumption. The results of the study show that there may be more factors behind changes in coffee consumption rather than just changes in income and contributes to literature through the analysis of both locations.
