A commodity has value in exchange only when it is ……. And ……
Question
A commodity has value in exchange only when it is ……. And ……
Solution
The statement seems incomplete. However, in the context of economics, a commodity has value in exchange only when it is "useful" and "scarce".
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Useful: A commodity must have some utility or use for the buyer. If it doesn't serve a purpose or meet a need or want, then it won't have any value in exchange because no one would want to buy it.
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Scarce: Even if a commodity is useful, it won't have value in exchange if it's abundant and easily available. Scarcity creates demand, and it's this demand that gives a commodity its value in exchange.
So, a commodity has value in exchange only when it is useful and scarce.
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