Commodity prices are much more volatile than overall inflation, as I noted in an earlier post, “Commodity Prices: Basics For Businesses That Buy, Sell or Use Basic Materials.” In this article I explain why that is. The “why” will help you figure out other questions, such as “How high?” and “For how long?” and “How deep a collapse?”
Begin with a textbook example, shown on the left panel of the chart. (If you have no recollection of supply and demand charts, scroll down for the “Supply and Demand Chart Explanation.”)..............................................Full Article: Source
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