Lorimer Wilson July 1, 5 Comments 7, Views Share tweet We are at the beginning of a major shift out of paper assets into real assets and the more I studied the merits of owning gold and silver the more I realized that silver was the smart decision. So says Silver Shield dont-tread-on. This paragraph must be included in any article re-posting to avoid copyright infringement.
In this essay we will discuss about Supply of a Commodity. After reading this essay you will learn about: Meaning of Supply 2. The Law of Supply 3. The Elasticity of Supply 4. Supply Curve under Monopoly or Imperfect Competition.
By supply is meant the quantities of a commodity or service which a seller is willing and able to offer for sale at various prices during a given period of time. Thus supply is always at a price and in relation to a period of time.
The higher the price, The greater will be the quantity of a commodity that will be supplied by a producer, and vice versa. Therefore, the relation between price and quantity supplied is direct and positive. The quantity supplied of a commodity is not dependent upon its price alone but on a number of factors such as the prices of other commodities, the price of factors used in its production, the goals of producers and the state of technology, these factors can better written in the form of an equation known as the supply function thus: We discuss these determinants of supply below: Price of the Commodity: The higher the price of a commodity, the larger will be the quantity supplied, and vice versa.
Price of other Commodities: A change in the price of another commodity also affects the supply of a commodity. For instance, if the price of good A rises, the producer of good may produce less of good and switch over to the production of good A in order to sell more of it.
Prices of Factors used in its Production: If the price of any one factor of production i. As a result, its output will fall and the supply will be reduced. The reverse will happen in the case of a fall in the price of a factor.
If a producer aims at maximising profit, he will produce less of the commodity which involves large risk. A producer who aims at maximising his sales will produce and sell more. If new and improved methods of production are used, they tend to increase the supply of commodities.
The Law of Supply: The law of supply states that, other things being equal, the quantity supplied varies directly with the price of the commodity. When price rises, the quantity supplied rises, and when price falls the quantity supplied also falls.
All these factors are assumed to be constant. These are the assumptions of the law of supply.
The law of supply is explained with the help of a schedule and a curve. Table 1 shows a hypothetical supply schedule for apples. If we depict this supply schedule on a diagram, we have a supply curve S as in Figure 1.
The supply curve has a positive slope. It moves upward to the right. It is a curve to the right of and below the original curve S where more is sold at all prices. It is a curve to the left of and above the original curve S and shows less supply at all prices. There are, however, certain exceptions to the law of supply.The Next Commodities Supercycle Is Getting Started Nick Rokke.
My good friend Nick Rokke, analyst for The Palm Beach Daily, agrees and provides more proof in his new essay below And we’re going to see some incredible moves in commodities in the next few years. Essays; Fluctuation of Gold Price; The distinction between gold and commodities is important.
Gold has maintained its value in after-inflation terms over the long run, while commodities have declined.
Some analysts like to think of gold as a “currency without a country’. Buy Silver Instead of Gold! Here’s Why. Lorimer Wilson July 1, 5 Comments 7, Views.
Share. Silver is the second most versatile commodity, second only to oil. At some point the market is going to recognize the incredible opportunity and, when it does, it will most likely overshoot and could make silver more valuable than gold.
This type of hat was considered the most appropriate and versatile hat for all kinds of social situations. Although common, bowler hats weren’t the only style to be worn. Other popular hats were the wide-brimmed pancake hats and the floppy top hats. Introduction to Commodity Market What is “Commodity”?
As per recent data the largely traded commodities are Gold, Silver, Energy and base Metals. If you are the original writer of this dissertation and no longer wish to have the dissertation published on the UK Essays website then please click on the link below to request removal.
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