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One option would be to purchase a contract of the commodity in the futures market as a hedge. So although you would be paying higher prices for the commodity, you would be offsetting that cost as the futures price rose on the contract.

Another option would be to sell the commodity in the futures market as a hedge. But instead of only selling one contract, you could sell several contracts as the price increases higher and higher in a grid formation. Then buy back all the contracts at once when a net profit has been reached.

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Q: How do you cope up with the increasing prices of commodities in the market?
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The roman government trying to cope with falling incomes and rising prices minted more coins this led merchants to raise prices which led to an economic condition called what?

Inflation


How does a market economy deal with scarcity?

Command market economies have the powers to attempt to counteract the problems of scarcity. These economies can adjust production to manage the supply side of limited resources. They can also impose rationing and price controls over and against the demand side pressures caused by scarcity.


How do you cope up with loss of economic support in the family?

By begining to plan your budget, or if you already do that, plan it in such a way that the current economical income will suffice. If that is impossible, then you dont cope.


Contrast how a market system and a command economy try to cope with the problem of economic scarcity?

A command economy is a system where the government, rather than the free market, determines what goods should be produced, how much should be produced and the price at which the goods will be offered for sale. The command economy is a key feature of any communist society. China, Cuba, North Korea and the former Soviet Union are examples of countries that have command economies. Read more: http://www.investopedia.com/terms/c/command-economy.asp#ixzz27xmMBJXEA market system is an economy that operates by voluntary exchange in a free market and is not planned or controlled by a central authority; a capitalistic economy.


What are the determinants of effective demand?

The business environment is always volatile because it is affected by the supply and demand of the marketplace. There are many factors that can contribute to the demand in the market and this demand will likewise also affect the supply. It is important to look into each of these factors to be able to cope up with changes. One of the most important determinants of demand is the income of the customer. When the income of the customer falls then his ability to purchase goods and service is affected. Another factor that influences the demand for a product is the prices of related goods. For example, if the price of an apple falls for one particular season then you can expect the customers to buy more apples during that time frame even if they are used to buying banana. In this regard, the banana industry suffers because the customers buy the apples because of the low price. Still another determinant of demand is the shifting taste of the market. Sometimes, there are trends in the market the drives the demand of some products up while sometimes it would adversely affect the demand in the market. The taste of individuals themselves can reflect on the overall demand of the market. If some customers prefer chocolate more than coffee then you can expect the demand of chocolate to be a lot more significant compared to coffee. Your expectations in the future are also likely to affect the demand for a particular good or service right now. For example, if you are expecting to earn a lot of money in the near future then you will most likely be more inclined to spend today. On the other hand, if you expect to encounter several financial difficulties in the near future then your demand for products and services then you are likely to save your money right now. Even the number of buyers in the market has will have an overall effect on the demand because they will drive up the production of these goods. The prices of these goods will also be dependent on the demand which is created by the number of buyers. As you can see, there are many determinants of demand and as a business owner; you should know each of these determinants individually and thoroughly. This is because you are in an industry that is highly dependent on the demands of the market. Every business in the world needs to follow the trends and where the demand in the market is going in order to survive. The enumerated determinants of demands are just some of the things that will affect the demand, there are still other factors that may affect the demand more than you though possible.

Related questions

How do you use cope in a sentence?

The word cope is a verb; it depicts an action. For example:'He found it difficult to cope with the increasing workload as exams approached.'


Why is the covent garden so popular?

Covent Garden was London's original fruit, flower and vegetable market. It moved away to new premises in Vauxhall London about 40 years ago because the narrow streets in the area could no longer cope with the increasing size of the trucks delivering to the market. Since then, the 18th century market shops have been transformed into up-market retail outlets with street entertainers to keep the tourists amused. It's well worth a visit but expect to pay high prices for anything that you buy.


How did tenant farmers cope with falling prices for farm production?

they went to work for large landowners.


How did tenant farmers cope with falling prices farm products?

they went to work for large landowners.


The roman government trying to cope with falling incomes and rising prices minted more coins this led merchants to raise prices which led to an economic condition called what?

Inflation


How can students cope with the increasing stress that they face everyday in school and at home?

go to therapy or talk to some friends or family members that you trust.


What factors are affecting market growth?

factors affecting growth of markets : 1. the demand of different goods and services affects the growth of market..if ther e is a increase in demand of goods n services only then there will be an increase or expansion of market ..markets increase if there is a increasing demand for goods and services. to cope up with this increase the markets tend to grow. 2. Introduction of new goods and services in market also helps in growing the market. 3. also as the number of seller or we can also say the companies producing goods or offering services increase ..there will be automatically an increase in markets or we can say growth in market.


Why are there now more airports?

There are more airports because there is an increasing amount of air traffic with more planes being bought and flown to cope with the rising demand for air travel.


What is the birth name of Kit Cope?

Kit Cope's birth name is Kristopher Cope.


What is The Cope's population?

The population of The Cope is 110.


When was The Cope created?

The Cope was created in 1906.


What is the birth name of Noelle Cope?

Noelle Cope's birth name is Noelle Elizabeth Cope.