Tags Math and Arithmetic

Animals & Plants Arts & Entertainment Auto Beauty & Health Books and Literature Business Electronics Engineering & Technology Food & Drink History Hobbies Jobs & Education Law & Government Math People & Society Science Social Studies Sports Travel & Places

0

Subjects>Math>Other Math

What is rationing function of price?

Anonymous

∙ 7y ago

Updated: 4/28/2022

Provided that the product is not a Veblen or a Giffen good, as its price increases fewer people can afford the commodity and so the demand for it decreases. This is a form of rationing in which the poorest people are priced out of the market.

Wiki User

∙ 7y ago

Still curious? Ask our experts.

Chat with our AI personalities

Fran

I've made my fair share of mistakes, and if I can help you avoid a few, I'd sure like to try.

Chat with Fran

Beau

You're doing better than you think!

Chat with Beau

Coach

Success isn't just about winning—it's about vision, patience, and playing the long game.

Chat with Coach

Add your answer:

Earn +20 pts

Q: What is rationing function of price?

Write your answer...

Submit

Still have questions?

imp

Continue Learning about Other Math

Rationing is a common form of distribution in a?

Rationing is a common form of distribution in a centrally-planned economy.

Which of these is most likely to lead directly to a black market?

Rationing

When did food rationing stop?

At midnight on the 4th July 1954. ____________ It varied from country to country. For example, West German abolished rationing in April 1950 - over four years before Britain.

What is a linear demand function?

It is a function of the form D = ax + b where a and b are some constants and x is a variable which is linearly related to the demand. x could be the price of the goods in question, or be the price of a complementary good, a substitute, or it could be income, or time. Also, a linear relationship does not mean a causal relationship.

How do you interpret a shadow price of zero?

If there is a shadow price of zero it means it is a non binding constraint and the RHS of the constraint can be changed up to the allowable increase or decrease without changing the value of the objective function.

Trending Questions

What is the GCF and LCM of 27 and 81? How many times do 3 go into 396? What is the LCM of 20 and 25 and 36? What is the scope and importance of mathematics in business? How many factors does the number 9 have? What times 8 equals 280? The quotient of a number and -7 decreased by 2 is 10. Find the number? How many thirds are in negative three and two thirds? What arguments may provide more control over the returned value? How many work days are in 1000 hours? What is the number 50000000000000 written in word form? What percent of pure gold is 14 kt? Im bad at math what are some good websites? What year were you born in if your 84 years old? Carrots Austin has 10 carrots and he wants to feed 6 of them to his rabbits how many ways he do this? What is 320 divided by 2? How many days equals to 160 hours? What are multiples of 56? What are the first fifteen counting numbers in base two? What is the square root of 16807?

Related Questions

How does a price ceiling undermine the rationing function of market-determined prices?

A price ceiling will undermine the rationing function of market-determined prices by creating a shortage. This is a price which is below equilibrium which will lead to more demand that supply that will cause a shortage.

Distinguish between the rational function and the allocation function of price system?

allocative function of price: to direct resources away from overcrowded markets and towards markets that are underserved. Rationing function of price: to distribute scare goods to those consumers who value them most highly

How do price act as a rationing device?

prices can not act as rationing device

In a free competitive market what is the rationing mechanism?

Price is the rationing mechanism. Whoever can afford it, will by it.

Price floors and ceilings stifle the rationing function of prices and distort resource allocation?

Economists have said that "price floorsand price ceilings stifle (prevent) the rationing function of prices and distort resource allocation." Consider what happens after a hurricane, prices are often frozen to pre-hurricane prices through "price gouging laws" to protect the consumer. Is this an example of a price ceiling or a price floor?This occurs for gasoline as well as for groceries and other products that might be in high demand after the damage of a hurricane. What is the impact in the market place of these limits?

What is Rationing as a function of price mechanism?

This is when consumers and producers respond to information( signalling) and incentive provided by the prices then scarce resources will be rationed between competing uses

What effect did rations have on meat prices?

In the UK, anyway, most food prices were fixed while rationing was in force. One of the main purposes of rationing by coupons was to avoid rationing by price. :)

What are the main effects of price ceiling and rationing?

The following are the main effects of price ceiling and rationing: 1. Beneficial for Poor Consumers: A well managed rationing system enables the poor section of the society to get the commodities which are in short supply. 2. Transfer of Resources: The price ceiling and rationing enable the government to transfer resources from the production of less important uses to more important uses. 3. Black Marketing: The worst effect of rationing is to encourage black marketing.

What do economists mean when they say that price floors and ceilings stifle the rationing function of prices and distort resource allocation?

When economist says price floors means above equilibrium and leads to undermanned surplus. When they say price ceilings it means price below equilibrium which leads to unsupplied shortage.

Which of these is most likely to lead directly to a black market a supply shock b price floor c rationing d equilibrium?

Rationing

Rationing is an attempt to limit shortages that naturally result what?

Price ceiling

What rationing is an attempt to limit shortage that naturally result from what?

Price ceiling

Resources

Top Categories

Product

Company

Copyright ©2025 Infospace Holdings LLC, A System1 Company. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Answers.