What is the difference between private goods and public goods, and how does this distinction impact their consumption and provision in society?

Private goods are products or services that are excludable and rivalrous, meaning they can be owned and consumed by individuals, and consumption by one person reduces the amount available for others. Public goods, on the other hand, are non-excludable and non-rivalrous, meaning they are available to all and consumption by one person does not diminish availability for others. This distinction impacts consumption and provision in society because private goods are typically provided by the market through individual transactions, while public goods are often underprovided by the market due to free-rider problems, leading to government intervention or collective action to ensure their provision.