There are several factors to consider in price tagging a commodity. a) Some of which are the demand of the consumers, availability and quality level of the commodity, and the number of different lines with similar products. b) If there is a great need for the commodity but the stock is very limited, the seller could decide for his gross margin and consequently his selling price. c) Another critical factor to consider in determining the price of a commodity is the cost incurred by the seller in acquiring the commodity