Asked by Gabriel Barrowman on May 06, 2024
Verified
Establishing a list of favored customers is an alternative rationing mechanism to price rationing.
Favored Customers
Customers who receive special benefits, discounts, or terms due to their status or relationship with a seller or service provider.
Rationing Mechanism
A system used to allocate scarce goods, services, or resources among people with competing needs or desires.
- Examine and distinguish between different rationing strategies other than price, such as waiting lines and ration coupons.
Verified Answer
LZ
Larry ZhangMay 08, 2024
Final Answer :
True
Explanation :
Establishing a list of favored customers as a rationing mechanism means allocating goods or services preferentially to certain customers over others, instead of using price increases to limit demand, which is known as price rationing. This can be seen in scenarios where suppliers prioritize long-standing or high-volume customers during shortages, rather than raising prices to reduce demand.
Learning Objectives
- Examine and distinguish between different rationing strategies other than price, such as waiting lines and ration coupons.
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