Final answer:
The more broadly a good is defined, such as general gasoline versus a brand like Wawa, ties into concepts of product differentiation and price elasticity of demand in business. Higher prices decrease consumption of the good and may affect other goods' consumption. Additionally, public goods differ from private goods in that they are non-excludable and non-rivalrous.
Step-by-step explanation:
When a good is defined more broadly, such as gasoline in general versus a specific brand like Wawa gasoline, this relates to the concept of product differentiation in business and economics. Product differentiation refers to the distinct attributes that make a product appeal to a certain segment of consumers, such as brand, quality, or physical aspects. For instance, brand loyalty might lead customers to prefer Wawa gasoline despite potentially higher prices or convenience of location might drive a customer to purchase gasoline at a nearby station regardless of brand.
In economic terms, when the price of a good, such as gasoline, increases, consumer behavior tends to shift, leading to reduced consumption of that good. This is known as the price elasticity of demand. Furthermore, changes in the price can also influence the consumption of other goods, potentially increasing the demand for substitutes or decreasing the demand for complementary goods. For example, if the price of gasoline rises significantly, people might opt for alternative modes of transportation, thereby reducing the demand for gasoline.
Public goods are another economic concept mentioned here. Unlike private goods, like a slice of pizza, which are separate and identifiable, public goods, such as national defense or clean air, are non-excludable and non-rivalrous, meaning they cannot easily be limited to paying customers only and consumption by one individual does not reduce availability for others.