Difference between revisions of "Commodity"
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Investors can buy or sell on [[commodity exchange|commodities exchanges]] using [[futures contract]]s. | Investors can buy or sell on [[commodity exchange|commodities exchanges]] using [[futures contract]]s. | ||
| − | More generally, a commodity is any good in a [[ | + | More generally, a commodity is any good in a competitive [[market]]. |
| + | |||
| + | *hedgers and [[hedge fund]]s attempting to protect against losses in price fluctuations | ||
| + | *speculators who attempt to profit from price fluctuations | ||
| + | *[[supply and demand]] | ||
| + | *consumer sentiment | ||
In general parlance, a commodity is a good where the good supplied is indistinguishable from one supplier to another. A consumer, then, only considers price when making a purchasing decision. In recent years, computers have become a commodity. | In general parlance, a commodity is a good where the good supplied is indistinguishable from one supplier to another. A consumer, then, only considers price when making a purchasing decision. In recent years, computers have become a commodity. | ||
[[Category:Economics]] | [[Category:Economics]] | ||
Revision as of 05:11, September 24, 2022
A commodity in economics is a good, such as food, metals or grains, which is interchangeable with similar goods, and which is available in large quantities.
Investors can buy or sell on commodities exchanges using futures contracts.
More generally, a commodity is any good in a competitive market.
- hedgers and hedge funds attempting to protect against losses in price fluctuations
- speculators who attempt to profit from price fluctuations
- supply and demand
- consumer sentiment
In general parlance, a commodity is a good where the good supplied is indistinguishable from one supplier to another. A consumer, then, only considers price when making a purchasing decision. In recent years, computers have become a commodity.