Asked by
Christo Delport
on Nov 17, 2024
Verified
Prices are inefficient rationing devices.
Inefficient Rationing
A situation where goods or services are distributed or allocated in a way that does not maximize utility or welfare, often due to non-market forces such as regulations.
- Discern the ramifications of enforcing price ceilings, encompassing shortage scenarios, rationing schemes, and the compromise of market effectiveness.
Verified Answer
PR
Learning Objectives
- Discern the ramifications of enforcing price ceilings, encompassing shortage scenarios, rationing schemes, and the compromise of market effectiveness.