Tag Archives: Supply and Demand

Analysis of Imbalances in Rice Market, North Sumatra Province (Published)

This study analyzes the imbalance between demand and supply of rice, as well as the influence of price and non-price variables to the demand, supply and stocks of rice in North Sumatra Province. This study uses secondary data of time series which comes from institutions, agencies or authorities, especially from Central Statistics Agency (BPS) of North Sumatra, North Sumatra Regional Division Bulog and other relevant institutions. The results shows that rice production is strongly influenced by expectations of the rice price  and fertilizer prices. The rise in price expectations will increase the number of rice in the future, whereas the increase in the price of fertilizer will reduce the number of offers because fertilizer is input component which is relatively great, while the price of a substitute has no effect on rice deals. Variable price rice and the prices of substitute goods do not significantly influence the demand for rice. Rising and falling of these two variables will not cause a change in the number of requests, while revenue positive effect on demand for rice when views of both the price is elasticity and revenue both inelastic.

Keywords: Commodity, Imbalance, Price, Rice Market, Supply and Demand