Answer to Question #236145 in Macroeconomics for Danni

Question

Suppose two goods, X and Y are economically in that positive output at which total benefits exceeds total costs. If good X is characterized by nonrivalry and non-excludubility, then:

Answer 1

Good X will continue recording positive output as its demand will be maintained. Being a non-excludubility and nonrivalry, the good may be considered as a basic factor. However, this may adversely affect good Y making its demand to start diminishing. Other funds to be spent on good Y may be used to purchase good X because of its non-excludubility factor.