Asked by karyme catano on Apr 25, 2024
Verified
The rationing mechanism in market economies is the adjustment of
A) supply.
B) demand.
C) quantity.
D) price.
Rationing Mechanism
A system or method used to distribute scarce resources or goods among consumers, often based on criteria other than price.
Market Economies
Economic systems in which supply and demand drive the production and pricing of goods and services, with minimal government intervention.
- Determine the role of rationing processes, including ration coupons and queuing, in circumstances where there's an imbalance between demand and supply.
Verified Answer
HL
Huamei Liuxue5 days ago
Final Answer :
D
Explanation :
The rationing mechanism in market economies is primarily through the adjustment of price. When there is a shortage, prices tend to rise, rationing the available supply to those willing and able to pay more. Conversely, if there is a surplus, prices tend to fall, making the product available to more consumers. This price adjustment mechanism helps balance supply and demand.
Learning Objectives
- Determine the role of rationing processes, including ration coupons and queuing, in circumstances where there's an imbalance between demand and supply.
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