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Words: | Submitted: Wed Oct 01 2003
... is that for the output of a basic commodity there is a time lag before an intended expansion in production actually is available or sale in the market. Manufactured product enterprisers have the time and possibility of changing the product because of a change in the demand. When there is overproduction of goods that can be rotted, prices decrease, sometimes the enterprisers prefer to hide or burn the goods to maintain the equilibrium. It is easier to control the production of manufactured goods making their price more stable. Bad weather sometimes stops some products to be shared, producing scarcity, so prices increase. For example huaycos in Perú stop the trucks that bring lemon or vegetables, so supermarkets increase the price because these are necessary products so people would by anyways. For a basic good, the demand of branded product like "Costeño" rice varies a lot depending on the price given. For example, ...
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