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Economics, Economic Policy
Year 4

Rrice Rationing


I don't understand how a price ceiling undermines the rationing function of market determined prices.  How could rationing coupons insure that consumers with the highest values get the limited amount of a good supplied when government price ceilings create shortages?  I believe that the answer is based upon demand, supply and market equilibrium.

By OTA:  Cheryl Sedlacek, MS

OTA Rating:  4.8/5

Your Price:  $2.19  (original value ~$3.99)

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