Question

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.

Answer 1

Answer: Option D: to allocate goods when there is a price ceiling.

Explanation: Nonprice rationing devices is the use of methods other than price controls that have the effect of limiting output. The Notice devices are often used to deploy goods when there is a price ceiling.

Common examples of Nonprice rationing devices are:

1. Queuing

2. The use of Coupon