Nonprice rationing will happen whenever there is excess supply in a market.

Nonprice Rationing

The allocation of goods among consumers using criteria other than price, such as waiting times or quotas.

Excess Supply

A situation where the quantity supplied of a good or service exceeds the quantity demanded at the current price.

Identify the processes involved in allocating scarce resources through price and nonprice rationing mechanisms.
Assess and contrast non-price rationing approaches, including line-ups and ration vouchers.

Verified Answer

Alyssa TollefsenMay 01, 2024

Final Answer :

False

Explanation :

Nonprice rationing occurs when there is excess demand, not excess supply, in a market, leading to shortages and the need for mechanisms other than price to allocate goods.

Learning Objectives

Identify the processes involved in allocating scarce resources through price and nonprice rationing mechanisms.
Assess and contrast non-price rationing approaches, including line-ups and ration vouchers.

Nonprice rationing will happen whenever there is excess supply in a market.

Definitions

Learning Objectives

Learning Objectives

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