Commodity

/kəˈmɒdəti/

nounIntermediate📊CommonEconomics
1 meaning1 question

Definitions

1

A raw material or primary agricultural product that can be bought and sold, especially one traded on an exchange.

/kəˈmɒdəti/

nounneutralIntermediate
Economics

A raw material or primary agricultural product that can be bought and sold.

The price of coffee, a major commodity, has increased recently.

💡 Simply: Imagine a big marketplace where farmers sell their crops, like wheat or corn. These crops are commodities because people buy and sell them all the time.

👶 For kids: Things like food or oil that people buy and sell.

More Examples

2

Gold is a precious commodity.

How It's Used

Economics

"Oil is a vital commodity in the global market."

Finance

"Commodity prices fluctuated wildly due to geopolitical events."

From Middle French commodité, from Latin commoditas "fitness, convenience, advantage", from commodus "suitable, advantageous".

The word has been used since the 14th century, initially referring to something convenient or useful.

Memory tip

Think 'common' things traded on a market.

Word Origin

LanguageLatin
Original meaning

"fitness, convenience, advantage"

Base: commodity
commodity marketcommodity priceraw commodity

Common misspellings

comoditycommadity

Usage

20%Spoken
80%Written