Pick a good or service for which the market left on its own will not produce the
ID: 1210285 • Letter: P
Question
Pick a good or service for which the market left on its own will not produce the amount that society desires. Characterize the good based on the characteristics of excludable/non-excludable and rival/non-rival. Give an explanation as to why the market, left to its own devices, will not produce the desired outcome.I am having a hard time thinking of an example. Pick a good or service for which the market left on its own will not produce the amount that society desires. Characterize the good based on the characteristics of excludable/non-excludable and rival/non-rival. Give an explanation as to why the market, left to its own devices, will not produce the desired outcome.
I am having a hard time thinking of an example. Pick a good or service for which the market left on its own will not produce the amount that society desires. Characterize the good based on the characteristics of excludable/non-excludable and rival/non-rival. Give an explanation as to why the market, left to its own devices, will not produce the desired outcome.
I am having a hard time thinking of an example.
Explanation / Answer
Potable water in most parts of the world is the best example,
Supply of potable water will not be sufficient to market if the market is left to its own will,
Today most of the world is facing water crisis and quickly people who have scarce water are paying much of their income to just get some water.
It is actually a non-excludable form and non-rival but increasing water is become rival and excludable for poor.