Tag Archives | Commodity

10 factors that governs the elasticity of demand of a commodity

There are several factors governing the elasticity of demand for a commodity. They are explained below. A commodity will have elastic demand if there are good substitutes for it. A small rise in the price of a commodity will send buyers to the substitutes. A lower price of a commodity will invite the former buyers of the substitute goods.

By |2011-03-10T11:49:27+00:00March 10, 2011|Economics|Comments Off on 10 factors that governs the elasticity of demand of a commodity

7 Factors that influences the Demand for a Commodity

Human wants are unlimited. The resources at the disposal of human beings are limited. Hence people are bound to exercise their choice. The satisfaction of human wants is linked with the production of goods and services and their pricing process.

By |2011-03-10T11:33:10+00:00March 10, 2011|Economics|Comments Off on 7 Factors that influences the Demand for a Commodity

11 essential Factors influencing the supply of a commodity

Generally, the following factors influence the supply of a commodity in the market. Generally, the aim of the firm is to maximize profits. Besides, maximum sales, maximum output and maximum employment are also the goals of the firm. These goals and change in them affect the supply of the commodity.

By |2011-03-10T11:33:10+00:00March 10, 2011|Economics|Comments Off on 11 essential Factors influencing the supply of a commodity
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