Asked by Natalia Smart on Apr 27, 2024
Verified
In the short run, it is necessary to nonprice ration a good whenever ________ exists.
A) excess demand
B) excess supply
C) a surplus
D) market equilibrium
Excess Demand
A market condition in which the quantity demanded of a product exceeds the quantity supplied at a given price.
Nonprice Ration
Distributing or allocating goods based on criteria other than price, such as need or merit.
Short Run
A period in which at least one input (such as plant size) is fixed, and only the variable inputs can be adjusted.
- Learn and recognize the methods employed in the market for rationing that do not rely on pricing.
Verified Answer
BD
Brianna DelisleApr 30, 2024
Final Answer :
A
Explanation :
Excess demand occurs when the quantity demanded of a good exceeds the quantity supplied at the current price, leading to shortages. Nonprice rationing mechanisms, such as waiting lists or lotteries, are often necessary to allocate the limited supply among the excess demand.
Learning Objectives
- Learn and recognize the methods employed in the market for rationing that do not rely on pricing.