Suppose Patty has a house in a good neighborhood in Philadelphia,PA.She decides to have the exterior of her house painted and the windows replaced.After the work is completed her house has appreciated in value and has also helped the neighbors' houses to go up in value.This is an example of a:

Question

Quizplus · Accepted Answer

The scenario describes Patty's house as a private good (owned and used by an individual) that has been improved through private actions (painting and window replacement). However, the benefits of this improvement extend beyond Patty's house and positively affect her neighbors' houses, creating external benefits. Therefore, it is a private good with external benefits.

Suppose Patty Has a House in a Good Neighborhood in Philadelphia,PA.She