0
What is the effect on poor people if price is a rationing device?
Wiki User
∙ 11y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
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.
What is a rationing devices?
it is when the price mechanism allocate products or services to people who willing to pay the most.
Why Explain in your own words how the terms rationing and price are related?
Rationing is a system to allocate goods and services without the use of prices. Rationing is when people receive a ration coupon that entitles them to a certain amount of a product.
In a free competitive market what is the rationing mechanism?
Price is the rationing mechanism. Whoever can afford it, will by it.
How does a market use price changes to ration a good?
In general, demand decreases as price increases, resulting in a form of rationing. (However, this effect varies widely among goods and services; for example, demand for gasoline decreases only slightly with increases in price.)
How do price act as a rationing device?
prices can not act as rationing device
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 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.
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.
What is a rationing devices?
it is when the price mechanism allocate products or services to people who willing to pay the most.
Why Explain in your own words how the terms rationing and price are related?
Rationing is a system to allocate goods and services without the use of prices. Rationing is when people receive a ration coupon that entitles them to a certain amount of a product.
In a free competitive market what is the rationing mechanism?
Price is the rationing mechanism. Whoever can afford it, will by it.
How does a market use price changes to ration a good?
In general, demand decreases as price increases, resulting in a form of rationing. (However, this effect varies widely among goods and services; for example, demand for gasoline decreases only slightly with increases in price.)
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
