Question

In principle, all goods and services are valued at _______, that is, inclusive of all taxes.
1. sales volume
2. market price
3. production volume
4. consumer preference

Answer 1

Correct Answer - Option 2 : market price

The correct answer is the market price

• Commodity valuation is the process of deriving the intrinsic value (actual worth of an asset) of a commodity under favorable market conditions.
• Commodity valuation follows the classical economic principle of arriving at a price by studying the intersection of the demand and supply curves of a good, which is also called the break-even point.
• Therefore, all goods and services are valued at market price, inclusive of all taxes, at least in principle.
• Since commodity markets rely largely on demand and supply patterns, anticipating future price movements of said commodities is the only way an investor can profit off of speculation.