On hot summer days, electricity-generating capacity is sometimes stretched to the limit. At these times, electric companies may ask people to voluntarily cut back on their use of electricity. On these days, electricity is
A)excludable, but nonrival in consumption.
B)not excludable, but rival in consumption.
C)excludable and rival in consumption.
D)not excludable and nonrival in consumption.

Question

Quizplus · Accepted Answer

Electricity is excludable because companies can restrict access to it, and it is rival in consumption during peak times because one person's use can limit availability for others.

On Hot Summer Days, Electricity-Generating Capacity Is Sometimes Stretched to the Limit