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How can price of a commodity impact on the equillibrium price and quantity of another commodity?
Wiki User
∙ 10y ago
The commodities have to be somehow related - the price of lead won't affect the price of oats, or at least we hope it won't.
There are a couple of ways this works.
First consider directly related commodities...we'll say diesel, heating oil and jet fuel. These are essentially the same product, but they go to different users and so are processed differently once the basic fuel is obtained. There's only a certain amount of this fuel, so if they want to make heating oil less expensive in the wintertime or jet fuel less expensive in summer they increase the prices of the other two fuels to discourage their use.
Next consider indirectly related commodities, such as diesel and wheat. It takes a LOT of diesel to produce wheat - you need diesel to plant, fertilize, harvest and transport it. If the price of diesel increases, the price of wheat also increases.
Wiki User
∙ 10y ago
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If the price floor is above market equilibrium then companies are forced to sell at that price. This means the market's quantity supplied and quantity demanded will not equal each other, resulting in a surplus.
Show what Diagrams to illustrate and explain the impact on the equilibrium wage rate and quantity of labor supplied in the labor markert more workers enter the labor marker?
Show what Diagrams to illustrate and explain the impact on the equilibrium wage rate and quantity of labour supplied in the labour markert more workers enter the labour marker?
A monopolist can control the price or the quantity sold but cannot control both?
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The important of price elasticity of demand in formulation of government policies?
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What type of changes can impact the quantity of water?
Heat
What is income effect mean?
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Another word for effect is?
impact
What is the impact of a price floor on a market?
If the price floor is above market equilibrium then companies are forced to sell at that price. This means the market's quantity supplied and quantity demanded will not equal each other, resulting in a surplus.
What does this quote mean you abuse land because you regard it as a commodity belonging to us When you see land as a community to which you belong you may use it with love and respect?
The quote is talking about view points. Viewing land as a commodity or possession creates the mindset of getting what one wants from it regardless of impact or consequence. Short term benefits, go along with short sighted views. Seeing the land as a whole, that supports your very life, the individual can see how small changes impact it, and in turn impact the individual and community.
Show what Diagrams to illustrate and explain the impact on the equilibrium wage rate and quantity of labor supplied in the labor markert more workers enter the labor marker?
Show what Diagrams to illustrate and explain the impact on the equilibrium wage rate and quantity of labour supplied in the labour markert more workers enter the labour marker?
What is a potential impact of burning coal?
A potenial impact of burning coal is using up the coal. Another impact is pollution
What is another word for effect in history?
Is impact
What is meant by impact?
The point of which one objects hits or collides with another object. (The point of impact).
What can impact a planet?
Meteroids or comets can impact on a planet.
Another word for collision?
Impact, Smash, Crash
Is there going to be a TNA Impact 2?
If you mean tna impact 2 game then yes but there isn't going to be another tna impact 2 programme.
