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The price of a commodity is determined primarily by the forces of supply and demand in the market. When demand for a commodity increases or when supply decreases, prices tend to rise. Conversely, if supply increases or demand decreases, prices usually fall. Other factors such as production costs, market competition, and external influences like government policies and global events can also impact commodity prices.
What else can I help you with?
How the price of a commodity is determined?
Commodity prices are quoted on either a spot or future basis on an electronic board each time they change. Future prices are quoted based on the date of delivery of the contracted commodities.
What best explains the difference between a fixed currency and a floating currency?
The price of a floating currency is determined by the currency exchange market while the price of a fixed currency is connected to the price of some other commodity.
How does price of commodity influence supply?
It's actually the other way around: the supply of a commodity influences its price, in that the more of the commodity you have, supposedly the lower the price to get people to buy more of it.
Is price of a commodity is study of microeconomics or macreconomics give your reason?
price of a commodity is a study of microeconomics as it deals with the behaviour of individual economic units or commodity.
How is the law of supply similar to the law of demand?
If the demand for a commodity increases, but the supply does not increase equally, the price will increase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will decrease. If the demand for a commodity decreases, but the supply does not decrease equally, the price will decrease. If the supply of a commodity decreases, but the demand does not decrease equally, the price will increase.
What determines the value of metal?
Metal value is determined by the purity of the metal. It is a commodity whose price depends on supply and demand.
How the price of a commodity is determined?
Commodity prices are quoted on either a spot or future basis on an electronic board each time they change. Future prices are quoted based on the date of delivery of the contracted commodities.
Why is gold so much money?
As with any other commodity, price is determined by supply and demand. Gold has a relatively low supply with high demand, which causes the price to rise.
What best explains the difference between a fixed currency and a floating currency?
The price of a floating currency is determined by the currency exchange market while the price of a fixed currency is connected to the price of some other commodity.
How does price of commodity influence supply?
It's actually the other way around: the supply of a commodity influences its price, in that the more of the commodity you have, supposedly the lower the price to get people to buy more of it.
Is price of a commodity is study of microeconomics or macreconomics give your reason?
price of a commodity is a study of microeconomics as it deals with the behaviour of individual economic units or commodity.
How is the law of supply similar to the law of demand?
If the demand for a commodity increases, but the supply does not increase equally, the price will increase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will decrease. If the demand for a commodity decreases, but the supply does not decrease equally, the price will decrease. If the supply of a commodity decreases, but the demand does not decrease equally, the price will increase.
State what the law of supply and demand shows and describe how it works?
If the demand for a commodity increases, but the supply does not increase equally, the price will decreaase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will increase. If the demand for a commodity decreases, but the supply does not decrease equally, the price will increase. If the supply of a commodity decreases, but the demand does not decrease equally, the price will decrease
What is the formula for chain base index numbers?
(price of commodity in the given year/ price of the commodity in preceding year) * 100
What is maximum price legislation?
it is the opposite of minimum price legislation.it is the commodity sold at a price above the one stated whereby the seller can increase the price of the commodity at will without prejudice
Will consumer buy more when price of a commodity falls?
according to law of demand consumer buy more of the commodity when price decreases
What do you mean by price fix hedge in commodity trading?
A price-fix hedge enables an importer or an exporter to lock into a future price for a commodity planned for import or export without "actually having a crystallised physical exposure to the commodity.
