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Commodityst

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1 Commodityst on Wed Dec 08, 2010 4:40 am

A commodity is a good for which there is demand, but which is supplied without qualitative differentiation across a market. Commodities are often substances that come out of the earth and maintain roughly a universal price.[1] A commodity is fungible, that is, equivalent no matter who produces it. Examples are petroleum, notebook paper, milk, and copper.[2] The price of copper is universal, and fluctuates daily based on global supply and demand. Stereo systems, on the other hand, have many aspects of product differentiation, such as the brand, the user interface, the perceived quality etc. And, the more valuable a stereo is perceived to be, the more it will cost.

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