The government imposes a price floor on wheat that is below the market price. You are asked to suggest a rationing scheme that will minimize the misallocation of resources. You suggest

A) using rationing coupons that cannot be resold.
B) using rationing coupons that can be resold.
C) using a queuing system to compensate for the excess demand.
D) that no rationing system will be necessary.

Rationing Coupons

Tickets or coupons issued by the government or an organization, allowing the holder to purchase a fixed amount of a scarce commodity or service.

Misallocation

An inefficient distribution of resources in an economy, leading to outcomes where resources are not used in the best possible ways according to the needs and wants of society.

Queuing System

A queuing system is a model used to analyze and manage the process by which customers wait for service or goods, focusing on efficiency and fairness.