Beach as a Rivalrous and Excludable Good

Steps:

• Identify excludability: Tourist pays $10 fee, so access is restricted to payers.
• Identify rivalry: Beach is overcrowded, meaning one person's use reduces availability for others.
• Recall good classifications: Private goods are both excludable and rivalrous; public goods are neither.
• Match characteristics: Beach fits private good due to payment and congestion.

Why D is correct:

• Private goods are defined as both excludable (non-payers excluded via fee) and rivalrous (use by one diminishes others' enjoyment, as shown by overcrowding).

Why the others are wrong:

• A: Free goods have zero opportunity cost and no price, but beach requires $10 payment.
• B: Inferior goods relate to income elasticity (demand falls as income rises), irrelevant to excludability or rivalry.
• C: Public goods are non-excludable and non-rivalrous, but beach excludes non-payers and shows rivalry via overcrowding.

Final answer: D