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Demand and Supply
- Commodities - raw materials
such as coal, oil, copper, iron
ore, wheat and soya
- Many commodities are traded on organised, global
commodity markets where buyers {who represent the
demand for a commodity} and sellers {who represent
the supply of a commodity} come together to agree
prices.
- Many commodities are traded on organised, global
commodity markets where buyers {who represent the
demand for a commodity} and sellers {who represent
the supply of a commodity} come together to agree
prices.
- Commodity markets - where buyers and
sellers meet to exchange commodities -
often these are international, organised
markets, for example the London Metal
Exchange and the New York Mercantile
Exchange.
- Demand - the amount
consumers are willing
and able to buy at a
given price
- Wheat for example, is used to make products such as bread, pasta,
biscuits, beer, flour and animal feed. the demand for wheat is affected
by the decisions of millions of businesses and individuals throughout
the world who but these products. If the demand for wheat rises, it will
affect the price of wheat. Countries like China and Russia are major
importers of wheat, buying wheat on world markets.
- Wheat for example, is used to make products such as bread, pasta,
biscuits, beer, flour and animal feed. the demand for wheat is affected
by the decisions of millions of businesses and individuals throughout
the world who but these products. If the demand for wheat rises, it will
affect the price of wheat. Countries like China and Russia are major
importers of wheat, buying wheat on world markets.
- Supply - the amount sellers are
willing to offer for the sale at any
given price
- The supply for wheat, e.g. is just as affected by
global conditions as the demand for wheat. there are
hundreds of thousands of small farmers who
produce wheat throughout the world. the supply of
wheat depends partly upon the prices farmers think
they will get for wheat compared to other products
they could grow. it also depends on weather
conditions, pests and diseases, all of which affect the
size of harvests.
- The supply for wheat, e.g. is just as affected by
global conditions as the demand for wheat. there are
hundreds of thousands of small farmers who
produce wheat throughout the world. the supply of
wheat depends partly upon the prices farmers think
they will get for wheat compared to other products
they could grow. it also depends on weather
conditions, pests and diseases, all of which affect the
size of harvests.
- Shortage - when the demand for a
good or service is greater than the
supply. when a shortage exists,
prices will tend to rise
- If demand for a commodity is greater than supply, then there will
be a shortage. Prices will rise when a shortage exists in a market.
The bigger the shortage the greater will be the rise in price. In
other situations, the supply of a commodity can be greater than
the demand. in this situations, there will be a surplus and prices
will fall.
- If demand for a commodity is greater than supply, then there will
be a shortage. Prices will rise when a shortage exists in a market.
The bigger the shortage the greater will be the rise in price. In
other situations, the supply of a commodity can be greater than
the demand. in this situations, there will be a surplus and prices
will fall.
- Surplus - when the demand
for a good or service is less
than the available supply.
when a surplus exists, prices
will tend to fall
- Good Markets - the market for
everyday products such as clothe,
food, petrol, going to the cinema, a
DVD etc..
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