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Questions and Answers
What are the two basic factors that influence the price of a commodity?
What are the two basic factors that influence the price of a commodity?
- Production cost and technology
- Consumer income and preferences
- Demand and supply (correct)
- Import and export
How does the price of a commodity change with higher demand?
How does the price of a commodity change with higher demand?
- It becomes dearer (correct)
- It remains the same
- It fluctuates randomly
- It becomes cheaper
What happens if demand is more than supply for a commodity?
What happens if demand is more than supply for a commodity?
- Imports will be used to meet the demand (correct)
- The commodity will go out of stock
- Equilibrium prices will rise
- Closing stocks will be carried forward
What is the fundamental equation of commodity demand and supply?
What is the fundamental equation of commodity demand and supply?
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How does seasonality impact the price of agricultural commodities during harvesting season?
How does seasonality impact the price of agricultural commodities during harvesting season?
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What effect does increased demand during the festival season have on the prices of precious metals like gold and silver?
What effect does increased demand during the festival season have on the prices of precious metals like gold and silver?
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How do news and rumors affect commodity prices in the short term?
How do news and rumors affect commodity prices in the short term?
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What can lead to disruptions in the supply of globally demanded commodities like crude oil?
What can lead to disruptions in the supply of globally demanded commodities like crude oil?
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