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these are the notes on commercial banks and monopoly
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IGCSE ECONOMICS
- Thread starter helllooo
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I have a doubt. What is rationing?
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Rationing is a function of price mechanism. Heres a brief description
Rationing function
Rationing function
- Prices serve to ration scarce resources when demand in a market outstrips supply.
- When there is a shortage, the price is bid up – leaving only those with the willingness and ability to pay to purchase the product. Be it the demand for tickets among England supporters for an Ashes cricket series or the demand for a rare antique, the market price acts a rationing device to equate demand with supply.
- The popularity of auctions as a means of allocating resources is worth considering as a means of allocating resources and clearing a market.
- Messages
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- Reaction score
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- Points
- 273
Is it that in the olden days that there was a system of buying goods? without using money?