Heriyanto ., Ruly Krisdiana

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In the previous years, increasing the powerful of cassava would be impact increasing the cassava demand
in the markets. The arising problem is how the supply of cassava to responses. Therefore, the research of
that is needed. The main objective of research is to identify the factors that influencing the supply response
of cassava. Research was conducted in Indonesia using the time series data comprising sweet potato
production, harvested area and price from 1966 to 2004. In addition the groundnut, soybean, paddy, sweet
potato and maize prices were recorded to identify the role of the commodity to cassava supply. Data was
analysis with supply function model was developing by Nerlove (1956; 1958).
The research results indicate that the supply response of cassava is influenced by the prices of cassava,
soybean and groundnut in the previous years, with positive sign exclude the groundnut price. Base on the
own price elasticity, cassava is inelastic. But the cross price elasticity with groundnut price, it is competitive
products of cassava. And with the soybean price, it is joint product. The implication of research is the
increasing cassava supply policy could be aborted through the increasing the cassava yields, in order to
anticipate the increasing demand of cassava.
Key word: Cassava; Supply Response; and Price Elasticity

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Jurnal Ekonomi dan Bisnis Airlangga (JEBA) (p-ISSN: 2338-2686; e-ISSN: 2597-4564) is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License