Excludable goods and rival in consumption.
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
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.
Concept Introduction:
Consumption: Consumption refers to the purchase of goods and services in order to satisfy human wants.
Want to see more full solutions like this?
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education