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Commodity
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<p>In <a href="/facts/Economics/HYctA2Dn">economics</a>, a commodity is an economic <a href="/facts/Goods/AtK6gQh2">good</a>, usually a <a href="/facts/Resource/NM1retdD">resource</a>, that specifically has full or substantial <a href="/facts/Fungibility/24LzNAE0">fungibility</a>: that is, the <a href="/facts/Market_(economics)/6RfCU3fH">market</a> treats instances of the good as equivalent or nearly so with no regard to who <a href="/facts/Production_(economics)/G5mF3WkI">produced</a> them. </p><p>The price of a commodity good is typically determined as a function of its market as a whole: well-established physical commodities have actively traded <a href="/facts/Spot_market/XxFWphwI">spot</a> and <a href="/facts/Derivative_(finance)/jx4CbakW">derivative</a> markets. The wide availability of commodities typically leads to smaller <a href="/facts/Profit_margin/jlXaP9t0">profit margins</a> and diminishes the importance of factors (such as <a href="/facts/Brand/hP6SnDWU">brand name</a>) other than price. </p><p>Most commodities are <a href="/facts/Raw_material/cthCpclF">raw materials</a>, basic resources, <a href="/facts/Agriculture/TGztqzJs">agricultural</a>, or <a href="/facts/Mining/g6uDIFab">mining</a> products, such as <a href="/facts/Iron_ore/rQMEvgMh">iron ore</a>, <a href="/facts/Sugar/jb5KXRHT">sugar</a>, or <a href="/facts/Grain/C00uWDPs">grains</a> like <a href="/facts/Rice/wvL1hBCz">rice</a> and <a href="/facts/Wheat/lrk6HdV3">wheat</a>. Commodities can also be <a href="/facts/Mass-produced/31Cmgjuc">mass-produced</a> unspecialized products such as <a href="/facts/Chemical_substance/EWcXU41d">chemicals</a> and <a href="/facts/Computer_memory/hQKVQ51J">computer memory</a>. Popular commodities include <a href="/facts/Petroleum/IQV0bHVd">crude oil</a>, <a href="/facts/Maize/lJ6c5xMH">corn</a>, and <a href="/facts/Gold/1znknojp">gold</a>. </p><p>Other definitions of commodity include something useful or valued and an alternative term for an economic good or service available for purchase in the market. In such standard works as <a href="/facts/Alfred_Marshall/zCqgFQDX">Alfred Marshall</a>'s <a href="/facts/Principles_of_Economics_(Marshall)/SLu7GQD2"><i>Principles of Economics</i></a> (1920) and <a href="/facts/L%C3%A9on_Walras/d0Wh7F6h">Léon Walras</a>'s <a href="/facts/L%C3%A9on_Walras/d0Wh7F6h"><i>Elements of Pure Economics</i></a> ([1926] 1954) 'commodity' serves as general term for an economic good or service. </p>