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Match each of the terms below with an example that fits the term.

a. fungibility the production of gasoline


b. inelasticity the switch from coffee to tea


c. non-excludability the provision of national defense


d. substitution the demand for cigarettes

User Maccettura
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Answer:

The correct answers are the following:

a) fungibility - the production of gasoline

b) inelasticity - the demand for cigarettes

c) non-excludability - the provision of national defense

d) substitution - the switch from coffee to tea

Step-by-step explanation:

a) the term fungibility means that the individuals part of something can be replaced by another same parts in the same way without making changes. The gasoline is an example of an fungible good

b) the term inelasticity means that the demand does not change when there is a variation of the price of that good

c) the term non-excludability means that the good or service must be given to everybody and can not be exclude from them.

d) the term substitution means that the person changes a good for another good because of the preferences or due to money reasons.

User Wandarkaf
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