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A commodity which is consumed in combination with another commodity. When demand for one commodity rises, demand for the other will rise as well.
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Conduct
Also, Market Conductconduct
The patterns of behavior that traders follow and strategies that they employ in adjusting to the markets in which they sell or buy.
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Consumption season
Also, Marketing Seasonseason
The period of time during which agricultural output is sold, typically extending from one harvest period to the next.
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A transaction that specifies a price of a commodity and the date of delivery at a future period of time.
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Core CPI
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CPI
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A price index where certain items are excluded from the CPI basket on the basis that their prices are highly volatile, subject to temporary influences or are affected by government policies. The index is used to calculate “core inflation” and reflects the underlying inflationary pressures in the economy.
See Consumer Price Index (CPI).
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Cost insurance freight (CIF)
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Cross price elasticity of demand
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The relationship between two commodities which can be substituted for one another (see also to elasticity of demand).
See Elasticity of Demand.
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Deficit areas
Areas that either do not produce or produce an insufficient amount of a given commodity to meet local demand (derived or final demand).
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People who buy contracts to sell the stocks/commodities in the future at a price agreed upon today, thus protecting themselves from price fluctuations.
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Imperfect substitute
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Also, Imperfect commodity
A commodity that consumers choose to consume in place of another preferred commodity when the price of the preferred commodity rises. However, the imperfect substitute does not satisfy a need or want to the full extent of the preferred commodity, so there is a less than one for one substitution.
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An overall rise in the prices of good and services in an economy. There is an inverse relationship between the prices of goods and services and the value of money in an economy: other things being equal, as prices rise over time, a given amount of money will be able to purchase a fewer and fewer goods and services.
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Informal market
Also, Informal Tradetrade
Small‐scale transactions of a few bags or less of a commodity, which are exchanged outside of official channels and are typically undocumented, unlicensed and unregistered. Informal cross border transactions are often carried across the border on bicycles or headloaded. While each transaction may be small, the total or aggregate volume and value of these transactions can be quite significant. This term is also often used to refer to illegal trade, although, these two types of trade are not necessarily equivalent. This has lead to some confusion in the literature. Therefore, it is important to define this term when it is used.
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Innovation
Also, Progressiveness
The process of devising better ways of production, processing and marketing, usually through research and development that increases the value of goods and services and avoids wastage of productive resources.
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Percentage change in quantity demanded of a commodity related to the percentage change in the price of that commodity.
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Parity
Also, Parity Pricing pricing or Price Parityparity
Making prices of a commodity in one location equivalent to the same commodity in another location, usually in a different country. It adjusts for marketing costs involved in transferring and transforming the product between two locations.
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The cost or value of something expressed in monetary terms.
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Price differential
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A spatial or temporal difference in prices.
See Spatial arbitrage and Seasonal arbitrage.
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Price discrimination
The act of charging consumers different prices for the same product.
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Seasonal arbitrage
Also, Temporal Arbitragearbitrage
Taking advantage of the price differential over time, usually over the agricultural season. The differential must exceed all costs associated with handling and storing the commodity.
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refers to the number and size distribution of buyers and sellers, the degree of product differentiation and the ease of entry of new firms into an industry.
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Structure‐Conduct‐Performance
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(SCP)
A framework or an approach to market analysis that is based on the premise that the structure of a market influences the conduct of its participants (buyers, sellers and other participants), which, in turn, influences the performance of markets.
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Substitute good
Also, Substitute Commoditycommodity
A commodity that can replace another in consumption or production such as millet for sorghum. When the price of one commodity rises, consumers will decrease their consumption of it and increase consumption of the substitute commodity. Wild and gathered products can be substitutes.
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