Asked by Andy Blackwell Uncategorized
What is the tangible way of determining the price of commodity?
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Asked in Economics, Commodities
How does the price affect the supply of commodity?
Asked in Economics
What is the relationship between marginal utility and demand?
There is a close relationship between the marginal utility and price of a commodity.The additional satisfaction from the consumption of an additional unit of the commodity is called marginal utilty. Price means the value of the goods expressed in the terms of money.Price of all units of he same goods of consumption are more or less identical.It means that the consumer pays the same price for all the units of the same goods of consumption. But marginal utility of the goods of consumption start diminishing as the consumer increase the units of consumption of the commodity.Therefore the consumer will like to pay that price for the commodity,which is equal to the marginal utility he gets from the commodity.If the price of the commodity are higher than the marginal utility he derives from the commodity he will not like to purchase the commodity. In this way there is a clod\se relation between the marginal utility and the price of the commodity.
Asked in Economics
Relationship between quantity and price?
Asked in Similarities Between
Relationship between demand and supply?
1:inverse relationship between supply and demand 2:supply depends upon the demand of a commodity, that it might be positive or negative. 3:supply always depends upon demand but demand never depends to supply. 4:a supply never affects the demand of a commodity but demand always affect to its supply. 5:demand is the initial stage but supply is the stage after demand. 6:supply have a positive relations to price whereas demand has a negative relations with price. 7:supply and price has a direct relations or positive relation. 8:law of supply relates to the price and supply of a particular commodity in a particular time period. 9:price has a connections with demand and supply that it affects both supply in a positive way and demand in a negative way and if price changes then both demand and supply will change. 10:demand curve shows the changes positions of demand in a different price level of a particular commodity where demand schedule also shows the changes positions of demand in a different price level of a particular commodity, hence both have a common objectives to depict the same result in a different way.
What is the difference between product and commodity?
A commodity is still a product, but it's one sold primarily on price. It's also one sold primarily business-to-business. Example: if you have a ton of wheat, you have a commodity; if you grind the wheat into flour and make bread out of it, you've turned it into a product. ------------- A commodity is anything that comes from multiple sources and is "traded" on some sort of market or exchange by those who produce, consume or wish to speculate in the commodity contracts which are created by those who have the physical product. The commodity market is a way of "securitizing" or quantifying the bulk product and applying a set of rules to the buying and selling. The exchange defines a "contract", usually by size for example 5000 bushels of wheat, 500 oz of gold, or 5000 American dollars, or 5000 gals of heating oil, or 1000 Swiss Francs. The exchange provides a way to track the contracts and assure the honest dealings for the buyers and sellers. A product is usually sold in a commodity system when there are multiple suppliers and multiple consumers competing for that product and usually financial speculators. Consumers will buy commodity contracts to guarantee their supply and price, producers or those holding the product use the commodity system to gain the highest cost via the commodity "auction-like" marketplace. In the middle are those who speculate on the value never intending to take physical possession of the product. As the contracts move through the market there are often storage costs ad other costs that make it attractive for the producer to sell the product at whatever price the market will offer.
Asked in Math and Arithmetic, Algebra, Geometry
Is there a formula for determining degrees for an acute angle?
Asked in Commodities
What is the meaning of the commodity channel index?
How do you trade through Hour Trading in Commodity market?
Being a skilled investor, an after hour trading is money-making comex tips to follow. After hour trading is the suitable way for buying & selling the commodities. The stock price after hours signifies to the investors that in what way commodity would behave at the time of opening the market next day. MMF solutions provides Comex Trading Tips to trade beneficially in the Commodities like gold, silver, base metals, energy and many more.
Asked in Horses
What is the best method of determining the age of a horse?
Asked in Economics
How is the law of demand related to the demand curve?
Asked in Economics
What is a total revenue test used for?
A way of roughly determining theprice elasticityofdemandfor acompany'sproduct, by evaluatingchangesin companyincomethat arise from price changes. If demand isdeemedelastic, the company will be cautious about raisingprices, while relativelyinelastic demandgives a company greater pricingflexibility. .
Asked in Economics
How does fairtrade help?
The philosophy behind Fair Trade is to ameliorate the relationship between power and international trade, which is most apparent in the global commodity chain. The global commodity chain is process and steps a certain commodity has to go through in order to be bought or consumed. For the context of Fair Trade, coffee is produced by producers around the world, sold to intermediaries or middle men, then the coffee is processed by a small number of multinational corporations (Nestle, Kraft, Proctor, Sara Lee) and then sold at the supermarket. Since the producers are dependent on the multinational to buy their products they have no way of bargaining a better price for the coffee. The price that the small producers receive is a small fraction compared to the price that the super market or the multinational corporations receive. The problem Fair Trade tries to ameliorate is the dynamic of power and the terms of trade. It creates a product line that tries to appeal to the more conscious consumer to give the small producers around the world a better price for their goods at a higher price.
Asked in Chemistry
How much is the element lead worth financially?
The price changes all the time, so it's hard to be extremely specific, but "not very much" is a pretty good answer. As of April 25 2009, the bulk price for lead was about 64 cents US per pound. Searching on Google (or some other search engine) for lead commodity price is a good way to find what the current market value is; this also works for other metals.
Which is best equity market or commodity market?
Asked in Economics, Inflation
Why production is the answer to inflation?
Understanding Commodity Prices?
In the world of finance there are many confusing terms and concepts, but thankfully commodities are not among them. When hearing the words "commodity prices", all an economist is really talking about is the cost of goods. Granted, most economists are talking about major commodities when referring to commodity prices, but technically a commodity can be anything consumers purchase. The main reason that commodities are so important when regarding the economy is that they form the backbone of practically any nation's wealth. One particular commodity that very much controls the wealth in the Middle East is oil. It is for this reason that we so often hear about the rise and fall of oil prices. Another reason why we often hear about commodities is that they are far more volatile compared to a nation's standard economic setup. Volatility is a measurement of how dramatically the commodity price of a particular good changes. This is an important value because it can be an indirect way of judging how stable an economy is. Naturally, commodity diversity will result in a more stable economy. Returning to the oil example, it is easy to see why the Middle East is regarded as a slightly unstable area. Their heavy reliance on oil means that the fall and rise of oil directly affects their economic standing. Another important value to understand when speaking about commodity prices is the rate of measurement per item. Many would understandably think that an item would be measured perhaps by its mass or its volume, but unfortunately this is not so. It isn't uncommon to hear of oil being referred to in barrels, or precious metals in carats. The simple fact of the matter is that there is no uniform method of measurement, and the measuring procedure varies quite a bit from commodity to commodity. In a nutshell, commodity prices are important to understand because they both affect the price of individual goods and they also indicate how a particular commodity affects a nation's economy. Commodity prices have high volatility, and greater diversity ultimately makes for greater stability in an economy.