factors determining the price fluctuations , explain it.
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There are four major factors that cause both long-term trends and short-term fluctuations. These factors are government, international transactions, speculation and expectation and supply and demand.
- Weather conditions. For example, an early frost can harm supply (causing a rise in prices). ...
- Inelastic demand. Demand for coffee and tea are relatively price inelastic.
- Inelastic supply. In the short term, the supply of coffee and tea is inelastic. ...
- Global markets
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