Asked by Maria Amavizca on May 06, 2024
Verified
In the short run, nonprice rationing will happen whenever there is excess demand in a market.
Nonprice Rationing
Distribution or allocation of goods and services based on criteria other than price, often used when there is a shortage.
Excess Demand
A situation in which the quantity demanded of a good or service exceeds the quantity supplied at a given price.
- Understand the importance of rationing systems, including ration coupons and lines, in situations where demand or supply exceeds the norm.
Verified Answer
FN
Faith NaylorMay 11, 2024
Final Answer :
True
Explanation :
Nonprice rationing occurs when demand exceeds supply at the current price, leading to mechanisms other than price increases to ration the available goods or services.
Learning Objectives
- Understand the importance of rationing systems, including ration coupons and lines, in situations where demand or supply exceeds the norm.
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