Explain what the phrase "price rationing" means

What will be an ideal response?


Price rationing is the process by which the market system allocates goods and services to consumers when quantity demanded exceeds quantity supplied.

Economics

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Two variables are related by an accounting identity when:

A) the two variables are mathematically identical. B) the two variables have a negative relationshi

Economics

Blutarsky is throwing a party at his Fraternity and is trying to choose what booze to buy. A bottle of vodka has four times the alcohol as a six-pack of beer

If Blutarsky only cares about the total amount of alcohol in his basket, what is his marginal rate of substitution of bottles of vodka for six-packs of beer? Devise a utility function to represent these preferences.

Economics

If a 10 percent rise in the price of bananas leads to a 20 percent reduction in the quantity of bananas demanded, then the price elasticity of demand is 0.50

a. True b. False

Economics

GDP in excess of potential GDP will shift the aggregate supply curve to the left and the price level will increase

a. True b. False Indicate whether the statement is true or false

Economics