Elasticity of Demand and Supply

Oct 13, 2025 by thesweetdesigns.com 32 views

Understanding the Trend of Demand, Supply, and Price of White Crystal Sugar in North Sumatra

The demand for white crystal sugar in North Sumatra Province has been a topic of interest for many years. This study aims to analyze the development of demand and supply of white crystal sugar in North Sumatra Province during the period 2001 to 2020. Using the smallest square method and trend analysis assisted by Minitab 16 software, this study revealed the trend of demand, supply, and price of white crystal sugar during two periods: 2001-2011 and 2012-2020. The data used is secondary data in the form of time-series data from 2001 to 2021.

Development of Demands and Business (2001-2011)

The results showed that during the period 2001-2011, there was a decrease in the demand for white crystal sugar by 0.03%. Conversely, the supply of white crystal sugar has increased by 12.40%. This shows an imbalance between demand and supply of white crystal sugar in North Sumatra in that period. The decrease in demand can be attributed to various factors such as changes in consumer preferences, economic conditions, and availability of alternative sweeteners. On the other hand, the increase in supply can be attributed to the expansion of sugar production in the region.

Request, Offer, and Price Trends (2012-2020)

Further analysis shows that the trend of demand, supply, and price of white crystal sugar has increased in the 2012-2020 period. That is, the consumption of white crystal sugar in North Sumatra tends to increase, accompanied by increased production and selling prices. This trend can be attributed to the growing demand for sugar in the region, driven by the increasing population and economic growth. The increase in production and selling prices can be attributed to the expansion of sugar production in the region and the increasing demand for sugar.

Elasticity of Demand and Supply

Elasticity of demand and supply of white crystal sugar shows how sensitive demand and supply to price changes. In the period 2001-2011, the elasticity of demand was -0.0023, showed an inelastic demand. That is, price changes do not really affect the amount of sugar requested. The elasticity of the supply in the same period is 1,0381, shows an elastic offer. This means that price changes will have a significant effect on the amount of sugar offered.

In the 2012-2020 period, demand elasticity became -0.0067, still showing inelastic demand. However, the bid elasticity changed to 0.2565, showing an inelastic offer. This shows that in the 2012-2020 period, price changes had no significant effect on the amount of sugar requested and offered.

Analysis and Implications

The results of this study provide some important implications:

Increased Consumption

Increased consumption of white crystal sugar in North Sumatra shows the increasing needs of the community for this sweetener. This needs to be balanced with increasing production to meet the needs of the community.

Government Role

The government has an important role in maintaining a balance between demand and supply of white crystal sugar. This can be done through price policies, subsidies, and production improvement programs.

Increased Efficiency

Increasing efficiency in the production process and distribution of white crystal sugar can help reduce prices and increase accessibility for the community.

This study provides a comprehensive picture of the dynamics of the white crystal sugar market in North Sumatra. The results of this study can be taken into consideration for the government, industry players, and related stakeholders in formulating policies and strategies to improve the welfare of the community and maintain the stability of the sugar market.

Conclusion

The analysis of the trend of demand, supply, and price of white crystal sugar in North Sumatra Province during the period 2001 to 2020 has provided valuable insights into the dynamics of the sugar market in the region. The results of this study have shown that the demand for white crystal sugar has increased in the 2012-2020 period, accompanied by increased production and selling prices. The elasticity of demand and supply has also been analyzed, showing that the demand is inelastic and the supply is elastic.

The implications of this study are that the government, industry players, and related stakeholders need to take into consideration the increasing demand for white crystal sugar and the need to balance it with increasing production to meet the needs of the community. The government also has an important role in maintaining a balance between demand and supply of white crystal sugar through price policies, subsidies, and production improvement programs.

Recommendations

Based on the results of this study, the following recommendations are made:

The government should implement policies to increase the production of white crystal sugar in the region to meet the increasing demand.
The government should also implement price policies and subsidies to balance the demand and supply of white crystal sugar.
Industry players should increase their efficiency in the production process and distribution of white crystal sugar to reduce prices and increase accessibility for the community.
Related stakeholders should take into consideration the results of this study in formulating policies and strategies to improve the welfare of the community and maintain the stability of the sugar market.

Limitations of the Study

This study has some limitations that need to be taken into consideration. The data used in this study is secondary data, which may not be accurate or up-to-date. The analysis of the trend of demand, supply, and price of white crystal sugar in North Sumatra Province during the period 2001 to 2020 may not be representative of the current situation. Therefore, further studies are needed to update the analysis and provide more accurate insights into the dynamics of the sugar market in the region.

Future Research Directions

Based on the results of this study, the following future research directions are suggested:

A study on the impact of climate change on the production of white crystal sugar in North Sumatra Province.
A study on the effect of government policies on the demand and supply of white crystal sugar in North Sumatra Province.
A study on the role of industry players in maintaining a balance between demand and supply of white crystal sugar in North Sumatra Province.

By conducting further studies on these topics, researchers can provide more accurate insights into the dynamics of the sugar market in North Sumatra Province and help policymakers and industry players make informed decisions to improve the welfare of the community and maintain the stability of the sugar market.

Introduction

The analysis of the trend of demand, supply, and price of white crystal sugar in North Sumatra Province has provided valuable insights into the dynamics of the sugar market in the region. However, there are still many questions that need to be answered. In this article, we will address some of the frequently asked questions (FAQs) related to the analysis of the trend of demand, supply, and price of white crystal sugar in North Sumatra Province.

Q1: What is the main objective of the analysis of the trend of demand, supply, and price of white crystal sugar in North Sumatra Province?

A1: The main objective of the analysis is to understand the dynamics of the sugar market in North Sumatra Province, including the trend of demand, supply, and price of white crystal sugar.

Q2: What is the time period covered by the analysis?

A2: The analysis covers the period from 2001 to 2020.

Q3: What are the key findings of the analysis?

A3: The key findings of the analysis include:

The demand for white crystal sugar in North Sumatra Province has increased in the 2012-2020 period.
The supply of white crystal sugar in North Sumatra Province has also increased in the 2012-2020 period.
The price of white crystal sugar in North Sumatra Province has increased in the 2012-2020 period.
The elasticity of demand and supply of white crystal sugar in North Sumatra Province has been analyzed, showing that the demand is inelastic and the supply is elastic.

Q4: What are the implications of the analysis?

A4: The implications of the analysis are that the government, industry players, and related stakeholders need to take into consideration the increasing demand for white crystal sugar and the need to balance it with increasing production to meet the needs of the community. The government also has an important role in maintaining a balance between demand and supply of white crystal sugar through price policies, subsidies, and production improvement programs.

Q5: What are the limitations of the analysis?

A5: The limitations of the analysis include:

The data used in the analysis is secondary data, which may not be accurate or up-to-date.
The analysis of the trend of demand, supply, and price of white crystal sugar in North Sumatra Province during the period 2001 to 2020 may not be representative of the current situation.

Q6: What are the future research directions?

A6: The future research directions include:

A study on the impact of climate change on the production of white crystal sugar in North Sumatra Province.
A study on the effect of government policies on the demand and supply of white crystal sugar in North Sumatra Province.
A study on the role of industry players in maintaining a balance between demand and supply of white crystal sugar in North Sumatra Province.

Q7: What are the recommendations for policymakers and industry players?

A7: The recommendations for policymakers and industry players include:

Implementing policies to increase the production of white crystal sugar in the region to meet the increasing demand.
Implementing price policies and subsidies to balance the demand and supply of white crystal sugar.
Increasing efficiency in the production process and distribution of white crystal sugar to reduce prices and increase accessibility for the community.

Q8: What are the benefits of the analysis?

A8: The benefits of the analysis include:

Providing valuable insights into the dynamics of the sugar market in North Sumatra Province.
Helping policymakers and industry players make informed decisions to improve the welfare of the community and maintain the stability of the sugar market.
Identifying areas for improvement in the production and distribution of white crystal sugar in North Sumatra Province.

Conclusion

The analysis of the trend of demand, supply, and price of white crystal sugar in North Sumatra Province has provided valuable insights into the dynamics of the sugar market in the region. The FAQs addressed in this article have provided a better understanding of the analysis and its implications. We hope that this article has been helpful in answering some of the frequently asked questions related to the analysis of the trend of demand, supply, and price of white crystal sugar in North Sumatra Province.