The Law of Demand

The law of demand and it’s application The law of demand and it’s application to fundamental analysis of commodities rests upon an understanding of consumer behavior. The factors which characterize consumer choice and how the market place reflects individual consumer responses are key components of this economic theory. Understanding what factors have affected demand in the past will help to develop expectations about demand in the future and its impact on market price. Demand for a particular product or service represents how much people are willing to purchase at various prices.…

Consumer Spending in U.S. Increases by Most in Eight Months

Consumer purchases climbed in January by the most in eight months, fueled by faster earnings growth that’s being accompanied by rising inflation. The 0.5 percent advance followed a 0.1 percent gain the prior month, a Commerce Department report showed Friday. The January figure exceeded the 0.3 percent median forecast in a Bloomberg survey. Incomes also climbed 0.5 percent, more than projected. Steady hiring, cheap gasoline, and rising home values are powering Americans’ ability to boost spending, which accounts for almost 70 percent of the economy. The report also showed the…