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What are the effect of commodities that have on derived demand?
JonahDonkorgp6858
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What is a price cut when the demand for a normal good is price inelastic?
Demand is inelastic when changes the in price of a commodity do not effect (or have very little effect) the quantity of that product demanded. For most commodities, demand decreases with price increases and demand increases with price decreases.
What is the cross elasticity of demand if two commodities are substitute and if two commodites are complement of each other?
cross effect is positive in substitution effect and negative in complementry goods
What is competitve demand?
Competitive demand is the demand for commodities that offer similar functions to the consumer
What is competitive demand?
This is the demand for commodities that offer similar functions to the consumer.
What are the basic commodities with stable demand?
In my opinion stable demand commodities are those which are necessary in life such as oil, gas, corn, rice, coal, steel
What is a price cut when the demand for a normal good is price inelastic?
Demand is inelastic when changes the in price of a commodity do not effect (or have very little effect) the quantity of that product demanded. For most commodities, demand decreases with price increases and demand increases with price decreases.
What is the cross elasticity of demand if two commodities are substitute and if two commodites are complement of each other?
cross effect is positive in substitution effect and negative in complementry goods
What is competitve demand?
Competitive demand is the demand for commodities that offer similar functions to the consumer
What is competitive demand?
This is the demand for commodities that offer similar functions to the consumer.
What are the basic commodities with stable demand?
In my opinion stable demand commodities are those which are necessary in life such as oil, gas, corn, rice, coal, steel
Does the price of commodities remain unchanged during the change in demand of those commodities?
Almost certainly not.
What is meant by derived demand and how does this demand characteristic impact freight demand?
Derived demand is the demand to transport goods or services to location depend on demand to consume a goods or services to location. Freight of product is derived from the customer demand of product.
Why shipping is a derived demand?
Shipping is derived from the demand for transportation of goods, etc.
Where is business demand often derived?
The nature of the demand for products differs from consumer demand because it is often derived from consumer demand.
What 4 factors have an effect on the marginal efficiency of capital?
1. Demand of commodities 2. cost of production 3. Foreign trade 4.Rate of population growth
What is an example for derived demand?
Derived demand comes from demand for another product. For example, if coal is in high demand, then there will be derived demand for mining. Another example: A farmer grows crops. In order to grow crops he needs fertilizer. Therefore, the amount of fertilizer he needs to buy, will derive from the amount of crops he needs to grow. Basically, derived demand comes as a result of demand for something else.
What commodities would be good to trade in the future?
"Commodities that good to trade in the future will be ones that will still be high in demand, whether or not the supply will be able to meet that demand. For example, oil will be a good commodity to trade in the future."
