On hot summer days,beach parking lots are usually full by early morning,even though one must pay to park there.Parking at such lots is _____ in consumption and _____.
A)rival;nonexcludable
B)rival;excludable
C)nonrival;nonexcludable
D)nonrival;excludable

Question

Quizplus · Accepted Answer

The fact that the beach parking lots become full by early morning suggests that parking at the lots is rivalrous, meaning that one person's use of a parking spot precludes another person's use of the same spot. Additionally, the statement that one must pay to park there indicates that parking is excludable, meaning that only those who pay the fee can use the parking spots. Therefore, beach parking lots are an example of a good that is both rivalrous and excludable, or a private good, making choice (B) the correct answer.

On Hot Summer Days,beach Parking Lots Are Usually Full by Early