Factors Influencing Growth And Development

Question 1

Summarise what is meant by volatility of commodity of prices

Answer 1

Prices don’t stay stable as a result of extreme price fluctuations , because both supply and demand are inelastic.

Question 2

How does volatile of commodity prices

Answer 2

Leads to a decrease in investment
And leads to low export revenues.

Question 3

Evaluation point forr volatility of commodity of prices

Answer 3

It’s not always bad news and sometimes you mare getting good prices .
Eg : FDI meaning that a bigger company takes the investment of the county