2006-11-12 10:46:06 · 2 answers · asked by Anonymous in Social Science ➔ Economics
No! If things were priced according to their supposed value...you can't put a price on the blood of men!
2006-11-13 01:20:21 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Yes. People producing or gathering commodities want to sell at a profit. Commodities traders want to earn a profit on their speculation. On rare occasions, when supply substantially exceeds demand, the US government steps in and buys up the surplus, to keep the producers from going out of business. On the opposite rare occasions when the demand greatly exceeds the supply, commodities traders drive up prices - like crude oil- for a while, then things tend to balance out over time. In this case, the sales price of the commodity greatly exceeds the cost to pump and refine. But the high profits do not necessarily go to the producers, who are usually tied into long term contracts.
2006-11-12 18:55:37 · answer #2 · answered by regerugged 7 · 1⤊ 0⤋