What Factors Determine Commodity Prices?

The law of prices. In a certain or specific period of time, the price fluctuations exhibited by a certain commodity or a certain type of commodity are determined by the value of the commodity, and are affected by market supply and demand to fluctuate around the value.

Price law

Right!

The law of value is

Actually,

The fluctuation of prices around the value is the manifestation of the role of the law of value. Because commodity prices rise and fall, the changes in commodity prices always take their value as the axis. In addition, from a long period of time and the society as a whole, the deviation between the price and value of commodities can be positive or negative and can offset each other. Therefore, the price and value of goods are generally equal.