Question

What are the long term factors affecting the demand for primary commodities?

Answer 1

What are long _ term  factors affecting the demand for primary commodity? Discuss and explain major international commodity agreements?

Answer 2

There are numerous factors which influence the demand for the primary goods and services including the rise in the salary level, change in the person’s preference and accessibility of value-effective substitute and rising population etc. As the income of a person rises, their demand for unfinished primary goods (grains) decreases because the increase in income makes him capable to buy prepared food items. Similarly, if the price of one commodity decreases the demand for its substitute will also decrease because people then want to save their money.