Introduction
Goods can be categorized into public and private goods. Ideally, these two kinds of goods differ in their market structure and characteristics. First, public goods are referred to as goods that have both non-rivalries and non excludable nature. That is; they cannot be separated from the users. On the other side, private goods are defined as items that yield affirmative benefits towards people. They are characterized by the excludable and rivalry nature.
Public goods
Police department
The police department is responsible for providing public services of ensuring security within the society. This means that every member, regardless of the social and economic class consumes the same quality and quantity of this public good. Ideally, no one pays more for this good then the other. This means that there is no rivalry, and hence the price elasticity response is stipulated to be inelastic. That is; the sensitivity to the cost of this product is very low. However, it does not have to be fully inelastic.
National weather system
The national weather systems are systems that are responsible for making predictions of on the weather, climate and hydrologic situations of any regions selected. This means that are the predictions that are made are not rivalry since none of the consumers of this product can over-consume than the others. The price-elasticity of this product is inelastic since the cost of providing this service is evenly distributed hence the response level is mild.
Lighthouses
Lighthouses are tall towers, building as well as other categories of structures that are functionally designed to emanate light from the systems of lenses. Historically, the lighthouses provide services to all the citizens without rivalry. Despite the fact that the cost of these amenities is distributed amongst the citizens hence the impact on the prices is mild. It is the price inelastic.
Public swimming pool
These are amenities that are considered public since it is used by anyone who wishes. They are among the socially classified public amenities. Difference in the minimal costs that are charged for maintenance purposes of these swimming pools is not effective with the level of demand of the quantity. This means that the level of response with reference to change in prices is inelastic. The slight elasticity is not significant.
Street lights
Street lights are light sources that are located within the urban centres and highways with an intention of providing security. Any road users do not over-consume the product at the expense of the other. This approves the characteristic of non rivalry. Ideally, the public good is inelastic since there are no optional substitutes.
Private goods
I phone
I- phones are identified as a chain of smart phones that are designed in outstanding and specified manner. They are identified as very effective. However, they were characterized by more developed operating systems that can manage to handle a lot of data. However, this private good is rivalry. Accordingly, any price change can result to an equivalent vast change in the level of demand of the same product. Ideally, there are different types of phones that consumers prefer when the prices vary. This means that the private good are almost perfectly elastic
Plasma TV
There are different categories of televisions that consumers may prefer to use. The plasma televisions are high resolution television sets which are purchased at high prices compared to the normal television sets. This item is a private good since it carries within it, the property of rivalry. That is; one can prefer a different brand and television increase the prices do not favor him or her. Ideally, the price elasticity deviates towards high elasticity due to the high level of response of the quantity demanded if the prices are changed.
Pickup truck (Ford F150)
This pick-up truck is very expensive compared to some other categories of trucks. Some of the differences between the Ford F150 and other related trucks are the engine power and origin. However, in case of any price change, then consumers can be identified to be indifferent about the available trucks. Economically, the increase in the price of this truck may lead to decrease in the level of demand. The consumers may shift their demand level to a cheap option. The level of price elasticity is very high. That is it is the price elastic.
Milk
Milk is considered to be a basic commodity of consumption. However, there are no consumers who are obliged to consume milk. In that case, milk is a private good which the consumers avoid. Ideally, it is consumed to meet personal benefits. Failure to observe these intentions, the consumers, may prefer a different beverage. Ideally, a small change in price may lead to degradation of the market volume showing that the level of price elasticity is outstandingly high.
Blue jeans
Blue jeans are one of the most preferred clothing genres. Ideally, they are admirable due to their texture and present ability. However, it does not imply that there lacks other related types of jeans. What happens in case the prices of blue jeans rises against the consumer’s ability to consumer? The consumer prefers to purchase different jeans at low prices. This means that the private good in question is also the price elastic. The slight inelasticity is caused by the few stable consumers of the product who do not react to price changes.
References
Blankart, C. B., Baake, P., & Borck, R. (2007). Public economics and public choice: Contributions in honor of Charles B. Blankart. Berlin: Springer.
Ezrachi, A., & Bernitz, U. (2009). Private labels, brands, and competition policy: The changing landscape of retail competition. Oxford: Oxford University Press.
Gwartney, J. D. (2006). Microeconomics: Private & public choice. Mason, OH: Thomson/South-Western.
