Question

Explain what is a commodity?

Answer 1

The meaning of the word can be vastly different depending on the context. Typically, "commodity" is used as an economic term to describe an object with high material or trade value. For example, a well-known commodity is gold.

Answer 2

A commodity is a basic good used in commerce that is interchangeable with other goods of the same type. Commodities are most often used as inputs in the production of other goods or services. ... When they are traded on an exchange, commodities must also meet specified minimum standards, also known as a basis grade.