WHAT IS problem caused by rationing?

Answer 1

Rationing can lead to shortages of essential goods, as it limits the quantity available to consumers, often resulting in long lines and frustration. It may also create a black market where goods are sold illegally at inflated prices, undermining the intended purpose of rationing. Furthermore, rationing can disrupt market signals, leading to inefficiencies in production and distribution. Lastly, it can foster resentment among those who feel unfairly treated by the distribution process.