Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 11, Problem 1QR
To determine
Excludable goods and rival in consumption.
Expert Solution & Answer
Explanation of Solution
Excludable commodities are the commodities that can be excluded from people to consume them or acquire benefit of the commodity. The consumer has to pay a price in order to avail the commodities.
A commodity is rival in consumption, if the consumption of a commodity by one person diminishes the availability of that commodity to another person. Consumption of private goods and common goods by one person reduces the availability of that good to other individuals.
A pizza producer can prevent someone who does not pay for the pizza from eating it. Therefore, pizza is excludable.
When one person eats it, no one else can eat it. So pizza is also rival in consumption.
Economics Concept Introduction
Concept Introduction:
Consumption: Consumption refers to the purchase of goods and services in order to satisfy human wants.
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Chapter 11 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
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