Asked by KALLA RAJU SRAVAN MS on Jun 26, 2024
Verified
World commodity prices over the past 170 years have
A) steadily decreased in both the short run and long run.
B) decreased in the long run despite occasional short-run increases.
C) remained constant in the long run despite occasional short-run fluctuations.
D) steadily increased in both the short run and long run.
World Commodity Prices
The prices of raw materials and agricultural products that are traded on a global scale.
- Elucidate the patterns observed in the prices of commodities and the fundamental economic causes behind them.
Verified Answer
JA
jegan annamalaiJun 26, 2024
Final Answer :
B
Explanation :
World commodity prices have shown a trend of decreasing in the long run, although there can be periods of short-run increases due to various factors such as supply disruptions, increased demand, or geopolitical tensions. This trend is attributed to technological advancements, improvements in production methods, and increased efficiency, which tend to lower the cost of production over time.
Learning Objectives
- Elucidate the patterns observed in the prices of commodities and the fundamental economic causes behind them.