Revision notes for business

Commodities are raw materials like oil and copper. A commodity market is where buyers and sellers meet to exchange commodities. The factors that affect the price of commodities are the interaction of supply and demand.

Demand is the amount of customers are willing and able to buy at a given price. In general, there will be more demand if the price is lower and less if the price rises. Factors that affect demand are price, the number of individuals wanting the product, the number of substitutes available and the income of potential consumers.

Supply is the amount of sellers are willing to offer for sale at…