A-Z Popular Blog Study Guide Search »
Economics
 Advertisements
Related Topics

7 Examples of Commodities

 , updated on
Commodities are goods that are more or less interchangeable. This includes goods that are physically almost identical and goods that are different but serve customer needs equally. Consumers of commodities almost always choose the cheapest item as they see no differences between suppliers. Producers of commodities have no pricing power and must accept a market price set by supply and demand. The following are basic examples of commodities.

Agriculture

Agricultural products such as food and beverages. Some producers are able to create a unique agricultural product that isn't a commodity such as a fine wine or artisanal food.

Materials

Materials such as wood or concrete.

Metals

Metals such as gold function both as a material and as a form of money or investment. Historically, payments were often made with commodity-based money that had intrinsic value.

Energy

Energy such as a kilowatt hour of electricity.

Global Commons

Shared essential resources such as air and water. The value of global commons may be estimated to account for pollution and resource depletion. For example, if a factory produces a widget with a value of $1 that results in $4 pollution per widget, this isn't a productive economic process.

Products

Products that customers view as the same such that they mostly buy the cheapest item. Firms work hard to develop brand image and quality that prevent this from happening. However, many industries slowly move towards becoming a commodity with time.

Services

Services that customers view as the same with purchase decisions based mostly on price. For example, a budget airline that can't sell many seats if they raise their price $10 above the competition on a particular route.

Notes

Individual producers and consumers typically have no influence over the price of a commodity. Both have to accept the market price. For example, it is generally impossible to buy gold at a price below the current market price.
Overview: Commodities
Type
Definition
Goods that are viewed as interchangeable such that they sell at a market price based on supply and demand.
Related Concepts

Goods

This is the complete list of articles we have written about goods.
Brown Goods
Business Goods
Capital Goods
Club Goods
Commodities
Common Goods
Common Resources
Complementary Goods
Consumer Discretionary
Consumer Durables
Consumer Goods
Consumer Products
Consumer Staples
Digital Goods
Durable Goods
Economic Goods
Experience Goods
Fashion Goods
Final Goods
Finished Goods
FMCG
Goods & Services
Inferior Good
Information Good
Intangible Goods
Intermediate Goods
Knowledge Product
Luxury Goods
Market Goods
Merit Good
Natural Resources
Necessity Goods
Perfect Substitute
Public Goods
Search Good
Social Goods
Soft Goods
Sporting Goods
Substitute Good
Superior Goods
Supplies
Unsought Goods
Veblen Goods
Virtual Goods
White Goods
If you enjoyed this page, please consider bookmarking Simplicable.
 

Goods

The common types of goods.

Unsought Product

An overview of unsought products.

Durable Products

The definition of durable product with examples.

FMCG

A few examples of what is meant by FMCG.

Experience Goods

The definition of experience good with examples.

Search Good

The definition of search good with examples.

Digital Goods

The definition of digital goods with examples.

Examples of Superior Goods

The definition of superior goods with examples.

Economic Bad

Common examples of an economic bad.

Relative Advantage

A definition of relative advantage with examples.

Product Positioning

A list of common types of product positioning.

Cost Leadership Definition

An overview of cost leadership.

Economic Goods

The common types of economic good with examples of each.

Product Market

An overview of product markets with examples.

White Goods

The definition of white goods with examples.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map