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prices can not act as rationing device
Lessie Jones
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How do prices act as a Rationing?
prices can not act as rationing device
Rationing?
the act of rationing
What is our main rationing device in the american economy?
The United States economy does not have a rationing device
In a free competitive market what is the rationing mechanism?
Price is the rationing mechanism. Whoever can afford it, will by it.
The condition in an economy that makes a rationing device a necessity is the fact that?
carcity exists
What effect did rations have on meat prices?
In the UK, anyway, most food prices were fixed while rationing was in force. One of the main purposes of rationing by coupons was to avoid rationing by price. :)
What are the main effects of price ceiling and rationing?
The following are the main effects of price ceiling and rationing: 1. Beneficial for Poor Consumers: A well managed rationing system enables the poor section of the society to get the commodities which are in short supply. 2. Transfer of Resources: The price ceiling and rationing enable the government to transfer resources from the production of less important uses to more important uses. 3. Black Marketing: The worst effect of rationing is to encourage black marketing.
Which of these is most likely to lead directly to a black market a supply shock b price floor c rationing d equilibrium?
Rationing
How does a price ceiling undermine the rationing function of market-determined prices?
A price ceiling will undermine the rationing function of market-determined prices by creating a shortage. This is a price which is below equilibrium which will lead to more demand that supply that will cause a shortage.
What rationing is an attempt to limit shortage that naturally result from what?
Price ceiling
Rationing is an attempt to limit shortages that naturally result what?
Price ceiling
What is rationing function of price?
Provided that the product is not a Veblen or a Giffen good, as its price increases fewer people can afford the commodity and so the demand for it decreases. This is a form of rationing in which the poorest people are priced out of the market.
