Russian Journal of Agricultural and Socio-Economic Sciences (Jan 2022)

ANALYSIS OF THE BALANCE OF SUPPLY AND DEMAND FOR CURLY RED CHILI IN MAGELANG REGENCY, CENTRAL JAVA PROVINCE, INDONESIA

  • Astuti E.P.,
  • Ekowati T.,
  • Florentina K.

DOI
https://doi.org/10.18551/rjoas.2022-01.11
Journal volume & issue
Vol. 121, no. 1
pp. 94 – 104

Abstract

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This study was aimed to analyze the effect of production costs, harvested area and producer-level curly chili prices on the supply of curly red chilies; analyze the influence of the price of curly chili at the consumer level, the price of other goods (large red chili) and consumer income on the demand for curly red chili; analyze the elasticity of supply and demand for curly red chili; and analyze the balance of supply and demand for curly red chili in Magelang Regency. Determination of the number of respondents curly red chili farmers at the sub-district and village levels using a quota sampling of 135 people. Sampling of the final consumer by accidental sampling amounted to 50 people. Data analysis for supply and demand with multiple linear regression techniques. The results showed that (1) the variables of production costs, land area, and producer level prices had a significant effect on the supply of curly red chili. Price variables at the consumer level, and income have a significant effect on the demand for curly red chili, while the price variables for other goods have no significant effect on the demand for curly red chili. (2) The results of the elasticity of supply consist of the elasticity of production costs showing that it is elastic, the elasticity of harvested area shows that it is inelastic and the price elasticity of curly red chili at the producer level is inelastic. The result of the elasticity of demand which consists of the price elasticity of curly red chili at the consumer level is inelastic, the price elasticity of other goods (large red chili) is elastic and the elasticity of consumer income is inelastic. (3) The balance of supply and demand is b = -2.67 < 1, it can be concluded that the effect of price on supply and demand for curly red chili in Magelang Regency is convergent or close to the equilibrium point.

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