Types of rationing of goods.
Concept Introduction:
Rationing- It is the equitable allocation of scarce resources, goods and services through the market price mechanism or government decree.
Price rationing- Scarcity is directly proportional to the demand-supply gap. Higher the demand, given the scarcity of the good, higher will be the price. High price discourages demand and goods are rationed according to the ability and
Non-Price rationing- When prices are below or above the market clearing price, by the law of moral suasion, non-price rationing is used to ration goods among end users. Queue rationing and allocation schemes are examples of non-price rationing.
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