Commodity

A commodity is a basic raw material or natural resource that can be bought and sold. In simple terms, a commodity is a basic product like oil, gold, wheat, coffee, or copper. Commodities are important because they are used to produce many goods and services in the economy. When commodity prices rise, companies may face higher costs, and consumers may pay more for everyday products. For example, crude oil is a commodity used to make gasoline, diesel, and many chemical products. A commodity is not the same as a finished product. A commodity is usually a basic input, while a finished product is something made from those inputs and sold to consumers.