A commodity, as described in the course material, is best defined as:

### Why this is right The course defines commodities to include both goods and services. They have utility and are exchanged between economic agents, commonly for money. ### The concept A good is tangible, such as food or a laptop. A service is generally intangible, such as a haircut or the service experience at a restaurant. Utility refers to the ability to satisfy a human need, want, or desire. ### The other options - **Only a physical object sold by a manufacturer**: this excludes services and makes the definition too narrow. - **Any item a firm stores, whether useful or not**: stored inventory is not automatically a commodity offered in exchange. - **A government regulation affecting a market**: this is an external policy condition, not a commodity. ### Terms - **Utility**: the ability of a commodity to satisfy needs or wants. ### Remember Commodities include useful goods and services offered in exchange.