ABSTRACT
THE price of a commodity depends, as far as demand is concerned, on what the buyer cando with it and whether he can do without it. The supplier, on the other hand, must consider the cost of production and alternative uses for raw materials and for capital and labour employed. Variations in any of these elements which determine the market price will affect all the others, and whether they will go a long way or be checked at an early stage is dependent on the “response”, as it were, with which they meet.
