Nonprice rationing devices are required:a. because the price system does not allocate resources efficiently. b. when there are price floors but not when there are price ceilings. c. so that prices will go back to equilibrium. d. to allocate goods when there is a price ceiling.

Question

Derek Dean

Business

12 May, 09:24

Nonprice rationing devices are required:a. because the price system does not allocate resources efficiently. b. when there are price floors but not when there are price ceilings. c. so that prices will go back to equilibrium. d. to allocate goods when there is a price ceiling.

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Answers (1)

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Cassandra Harmon · Answer 1

d. to allocate goods when there is a price ceiling.

Explanation:

Non price rationing or queuing is a measure used when there is a price ceiling, queuing is used to arrange people on a first come first serve basis.

Rationing is done on the non monetary cost of waiting in line.

Waiting time eventually balances buyer equillibrum. When customer's are waiting on queues for too long some of them loose interest and leave, this restoring balance between what is available and number of people waiting to buy.