What is divisibility of goods?

Answer 1

Divisibility of goods refers to the ability to divide a good into smaller units without losing its value or utility. This characteristic allows for flexible transactions, enabling consumers to purchase only the quantity they need or desire. For example, a divisible good like rice can be sold in varying amounts, while indivisible goods, like a car, must typically be sold as a whole. Divisibility plays a crucial role in facilitating trade and maximizing consumer satisfaction.