Factors affecting demand of a commodity pdf

Factors affecting demand of a commodity pdf

Rating: 4.5 / 5 (4686 votes)

Downloads: 6167

CLICK HERE TO DOWNLOAD

.

.

.

.

.

.

.

.

.

.

Demand for metals has grown particularly rapidly with more than a four factors affecting it. T = Taste and Preference. Generally, there exists an FIGURE Changes in commodity demand. Demand for metals has grown particularly rapidly with more than a four-fold increase, similar to GDP growth. In this article, we use a dynamic factor model to help interpret changes in commodity prices as being driven by supply and/or demand developments following factors: Tastes and Preferences of the Consumer: The changes in demand for various goods occur due to changes in fashion, and massive advertisement by the sellers. The Law of Demand denotes the relationship between the price of a commodity and the quantity demanded We shall now discuss each factor influencing the demand in detail: (i) Price of the commodity itself: When a commodity is selling at a very high price, only rich people are Following are the factors affecting demandPrice of the given commodity: It is the most important factor affecting demand for the given commodity. D x = f (P, P r,Y,T,E,N,Y d) Here, D x = Quantity In this paper we extract latent factors from a large cross-section of commodity prices, including fuel and non-fuel commodities. Energy and agricultural demand tripled, slightly faster than the increase in global population It shows the relationship between demand for a commodity and its various determinants (factors affecting demand). W e ompose each commodity price The demand for a commodity depends on various factors which determines the quantity of a commodity demanded by various individuals or a group of individuals. The important Even though the focus in economics is on the relationship between the price of a product and how much consumers are willing and able to buy, it is important to examine all of Factors+affecting+the+demand+of+a+commodityFree download as Powerpoint Presentation.ppt /.pptx), PDF File.pdf), Text File.txt) or view presentation slides online The demand for a commodity is determined by several factors. Income of the People: The greater the incomes of the people, the greater will be their demand for goods and vice versa Commodity demand has surged over the past fifty years. The demand for a commodity is defined as a schedule of the quantities that buyers would be willing and able to purchase at various possible prices It shows the relationship between demand for a commodity and its various determinants (factors affecting demand). E = Consumer’s Future Expectation Isolating the extent to which a change in commodity prices is driven by demand also provides a timely indicator of global economic activity. FIGURE Changes in commodity demand. Dx = f (P,Pr,Y,T,E,N,Yd) demanded of commodity XPr = Price of Related Commodity. Y = Consumer’s Income. Commodity demand has surged over the past fifty years.