Commodities Demand
FuturesSponsored Content

Curriculum Content
To understand how a commodities demand interacts with economic demand and marketplace prices, you need to understand how economics defines demand. Demand falls into two economic categories. Goods can either be elastic or inelastic. The categorization is based on the interactions of demand, supply and price. Commodities demand can either be elastic or inelastic.
Elastic
Elastic goods are only bought at certain demand levels. Each time you increase the price, buyer’s desire to purchase the good decreases. If price is too high demand will eventually disappear completely. People prioritize their needs, and elastic goods are quickest on the chopping block. Who’s going to buy a gaming console if it’s suddenly increased from $400 to $400,000 in price?
Inelastic
Inelastic demand functions completely opposite of elastic demand. These goods are always required and changes in price will never reduce demand. Think of food, water, housing, and electricity. If you increase the price, people stop buying elastic goods to afford their purchases of these goods. Increase the price further, they’ll start working overtime. Increase the price even further, and they start selling things they don’t really need to purchase these goods. Few goods are perfectly inelastic. People will tolerate and sacrifice to pay for high rent. At extremely high prices, they’ll simply begin packing their things and looking for a cheaper place to live. People will seek cheaper substitutes for inelastic goods if prices stay too high for a long enough period of time. They’ll use cheaper competitor products. They’ll even start to develop cheaper alternatives. If apples rose to $50 a pound overnight, grapes and bananas would be purchased far more often. Commodities are mostly inelastic. Agricultural products, Metals, and Energy fuels are not things you can simply decide you don’t want to buy anymore, even if you’re forced to buy an alternative from the same category.
Did we help you? Vote with a Crypto-Donation!
Visit on Steemit!
Support us on Steemit!

Donate Bitcoin
141FSmuHkMSZVsQQtE9GHSPyj6gAonqqWR

Donate Dash
Xr4fdtP78Mh3gnVwAUjjuZRCq3kubaHZ5o

Donate Litecoin
LcrxGsshB2j9SddnZNdLfYMsDqAtw3Dr9v

Donate Iota
LXIVNBVHRYBOHRWNGMBNHOYMT9GBEFTPQMKDUZUYYHGMPXOOEYETMUQZXWXCGWBMTFERLW9LMCKNUDCKAMDOQCNDNZ
Visit on D.Tube!
Support us on D.Tube!

Donate Bitcoin Cash
14NCVeGCZfHf7tiy9N2Yz1mrBNi9m2mQ4S

Donate Ethereum
0xAF7d66B09F34833Ccec1Ed9e4D356D40c09698e5

Donate Ripple
raiZ2rCXLeBTUh2A4voKALZpMxQ88KxZxm

Donate Monero
42byh9AjzB3XXRptSeSfzAGC588HRZgVXAGMay6yYKjjAHinUxdQkxw3Ay1XcziXV86XY57aRqG5kGnJ8LFWmSjmAnUEnYh
International Economic Analysis:
- Major Currency Economic Summaries
- Performance of Major Imports and Exports
- Mandates of Central Banks versus Expectations
- Performance Indexes of Major Economies
- Economically Correlated Currency Projections
- Large Funds Currency Sentiment Readings
- List of Technical Indicators to Look For
- Occasional: Foregin Exchange Technicals Markups
American Markets Analysis:
- Summaries of American Economic Structure
- Performance of Major
- Imports/Exports
- Federal Reserve Mandate versus Expectations
- Performance Indexes of U.S Economy
- Economically Correlated U.S Dollar Projections
- Large Trading Fund Index Sentiment Readings
- Market Wide Earnings Versus Valuations
- Fundamental Ranking of U.S Business Sectors
- Best and Worst Future Consensus Estimates
- Occasional: Firm Fundamental Strength Report
- List of Technicals to Look for While Trading
Storefront
Investment and Finance, Serviced by Amazon
No Results Found
The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.