Analysis of chili supply in Indonesia

Abstract

This study aims to determine the supply factor of chili, the dominant factor, and the elasticity of supply in the Indonesian research location. Multiple linear regression was used to analyze the data. The results showed that the variable number of chili production in the previous year and chili area in year t significantly affected the supply of chili in Indonesia. In contrast, the price of chili in the previous year and the price of urea fertilizer in year t had no significant effect. A variable of chili area is the dominant factor in the supply of chili. The value of elasticity in the short and long term on the number of chili production in the previous year is inelastic. At the same time, the variable of chili area is elastic in the short and long term.