3. Give one example of a fungible good and one example of a non-fungible good. What is the

difference between these two types of goods, and why is it important?

Score

Answer:One fungible good is petroleum. A non-fungible good can be clothes or shoes. The main difference is that fungible goods are the same for everyone and can be bought just about anywhere. Non-fungible goods are different for different consumers such as clothes and shoes, people have different sizes so it isn't the same for everyone. The difference is important because fungible products consumers can get them anywhere, they can change shops or gas stations and still get the same product. This poses a challenge for producers that produce fungible products because there is competition in that sector. They have to overcome the other competitors and create a brand for their product in order to survive.