HOW DOES PRICE DEPRECIATION IMPACT ON PURCHASE ABILITY: A CASE OF PALM OIL PRODUCTS

PEFRIYADI PEFRIYADI, TOPAN ALPAREDI

Abstract


The objective of this learning is to determine whether the depreciation in the price of palm oil affected the purchasing power of the people in the Padang Serai Village, Bengkulu. Based on the conclusions of the simple regression analysis, it shows that the conclusion of the test of the depreciation variable in the price of palm oil partially has a significant effect on people's purchasing power. This is indicated by a significance value of significant (0.002) < (0.05). This conclusion shows that if the palm oil price depreciation variable (X) is increased by one unit, then the purchasing power variable (Y) will increase by 0.423. From the results of the determinant test (R2), it is known that the value of R = 0.573, which means that the relationship between the depreciation of palm prices and the purchasing power of the people is 57.3%, meaning that there is a close connection between variables. The R square score of 0.328 means that the depreciation of palm oil prices can explain 32.8% of people's purchasing power. Meanwhile, the excess of 67.2% can be explained by other aspects not studied in the current observation.

Keywords


Price Depreciation, Oil Palm, People's Purchase Ability

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DOI: http://dx.doi.org/10.15548/jebi.v7i2.424

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