economics discussion 15
Prices serve a rationing function. When quantity demanded exceeds quantity supplied, prices rise to alleviate the shortage. When quantity supplied exceeds quantity demanded, prices fall to alleviate the surplus. However, when prices are inflexible, shortages and surpluses persist. Other rationing mechanisms must develop.
- Using demand and supply analysis, describe a specific situation where a shortage occurred. Why were prices unable to adjust in this market?
- Combining what you learned from your readings as well as from the video clip, what other rationing functions could develop to alleviate the shortage?
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines
Order Paper Now