Question

meaning of commodity

Answer 1

A commodity is a basic good or raw material that is interchangeable with other goods of the same type. Commodities are often used as inputs in the production of other goods or services and are typically characterized by their uniform quality, making them fungible. Common examples of commodities include agricultural products (like wheat, corn, and coffee), natural resources (like oil, gold, and silver), and other raw materials. Commodities can be traded on various markets, and their prices can fluctuate based on supply and demand dynamics.