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When Describing Goods and Services, What Is Meant by the Terms

question 156

Essay

When describing goods and services, what is meant by the terms "rival" and "nonrival?" Are private goods rival or nonrival? Are public goods rival or nonrival? Are common resources rival or nonrival?


Definitions:

Equilibrium Price

The value where the supplied quantity of a product equals the demanded quantity of that product.

Equilibrium Quantity

Supply and demand volume of goods or services at the price where equilibrium is achieved.

Market Price

The current price at which a good or service can be bought or sold in a marketplace, determined by supply and demand forces.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to market equilibrium.

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