Definition Of Commodity

A commodity is an object having utility. Utility implies the capacity to satisfy a need. Any commodity or service with the capacity to meet human wants directly or indirectly has its usage for human beings, e.g.,·wheat, apples, meat, milk, leather, cotton, wool, flowers, or a nice painting; the work of a barber, the services of a doctor, a teacher, or a peddlar, etc. Usefulness is relative and unstable. For example an air-conditioner has utility (usefulness) in an equatorial zone, whereas the same has no usefulness in polar region. The geographical, cultural and social peculiarities of different regions act in a group in determining the usefulness or otherwise of a commodity or service and its degree.