Figure 6-6
-Refer to Figure 6-6.In which of the following cases would sellers have to develop a rationing mechanism?

Question

Figure 6-6 
-Refer to Figure 6-6.In which of the following cases would sellers have to develop a rationing mechanism?

Quizplus · Accepted Answer

A price ceiling of $6 would result in excess demand (more buyers than sellers are willing/able to supply) and sellers would need to develop a rationing mechanism to determine who gets to purchase the limited supply of the good. A price ceiling of $8 would still allow for a market equilibrium without the need for rationing. A price floor would result in excess supply (more sellers than buyers are willing/able to purchase) and would not require a rationing mechanism.

Figure 6-6 -Refer to Figure 6-6.In Which of the Following Cases Would