8/15/2023 0 Comments Alfred coffee prices![]() ![]() Examples include gold, silver, helium, and oil.Įnergy commodities include electricity, gas, coal and oil. Soft commodities are goods that are grown, such as wheat, or rice. Well-established physical commodities have actively traded spot and derivative markets. The price of a commodity good is typically determined as a function of its market as a whole. The demand for one type of stereo may be much larger than demand for another. Non-commodity items such as stereo systems have many aspects of product differentiation, such as the brand, the user interface and the perceived quality. Karl Marx described this property as follows: "From the taste of wheat, it is not possible to tell who produced it, a Russian serf, a French peasant or an English capitalist." Petroleum and copper are examples of commodity goods: their supply and demand are a part of one universal market. In economics, the term commodity is used specifically for economic goods that have full or partial but substantial fungibility that is, the market treats their instances as equivalent or nearly so with no regard to who produced them. ![]() The Latin word commodus (from which English gets other words including commodious and accommodate) meant variously "appropriate", "proper measure, time, or condition", and "advantage, benefit".ĭescription Characteristics Going further back, the French word derives from the Latin commoditas, meaning "suitability, convenience, advantage". The word commodity came into use in English in the 15th century, from the French commodité, "amenity, convenience". In such standard works as Alfred Marshall's Principles of Economics (1920) and Léon Walras's Elements of Pure Economics ( 1954) 'commodity' serves as general term for an economic good or service. Other definitions of commodity include something useful or valued and an alternative term for an economic good or service available for purchase in the market. Popular commodities include crude oil, corn, and gold. Commodities can also be mass-produced unspecialized products such as chemicals and computer memory. Most commodities are raw materials, basic resources, agricultural, or mining products, such as iron ore, sugar, or grains like rice and wheat. The wide availability of commodities typically leads to smaller profit margins and diminishes the importance of factors (such as brand name) other than price. The price of a commodity good is typically determined as a function of its market as a whole: well-established physical commodities have actively traded spot and derivative markets. In economics, a commodity is an economic good, usually a resource, that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them. ![]()
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