Explain what the phrase price rationing means. What will be an ...

[tfester]

Explain what the phrase price rationing means.
 
  What will be an ideal response?

Question 2

Which of the following describes the difference between scarcity and shortage?
 
  A) There is no difference; either word can be used to describe the situation that exists when there is less of a good or service available than people want.
  B) There is a shortage of almost everything. Scarcity occurs only if the quantity demanded of a good or service is greater than the quantity supplied at the current market price.
  C) In the economic sense, almost everything is scarce. A shortage of a good or service occurs when the quantity demanded is greater than the quantity supplied at the current market price.
  D) In the economic sense, almost everything is scarce. A shortage of a good or service occurs when the quantity demanded is greater than the quantity supplied at the equilibrium price.

[6ana001]

Answer to Question 1

Price rationing is the process by which the market system allocates goods and services to consumers when quantity demanded exceeds quantity supplied.

Answer to Question 2

C

[tfester]

YES! Correct, THANKS for helping me on my review

[tanna.moeller]

Excellent