How ped and pes of commodities affect producers, Microeconomics

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How does the PED and PES of commodities affect producers in developing countries?

Explanation of PED (formulaic)

Definition of PED
outlining commodities as having low PED

a) few substitutes

b) low proportion of income spent on commodities

illustration of price fluctuations because of shift in inelastic supply and demand curves
how prices of commodities have fallen over the past 30 years

a) Enhancing use of substitutes (rubber for example)

b) leading to stagnant/decreased demand

c) dependency of developing countries on commodities means that producers are price takers - and thus have an incentive to enhance output in order to enhance revenue, which enhances supply and lowers the price

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