Refer to the information provided in Figure 4.3 below to answer the question(s) that follow. Figure 4.3
-Refer to Figure 4.3. A nonprice rationing system such as queuing must be used to ration the available supply of pencils if the government will not allow retailers to charge more than ________ for a pencil.
A) $0.40
B) $0.45
C) $0.50
D) $0.55

Question

Refer to the information provided in Figure 4.3 below to answer the question(s) that follow.  Figure 4.3
-Refer to Figure 4.3. A nonprice rationing system such as queuing must be used to ration the available supply of pencils if the government will not allow retailers to charge more than ________ for a pencil.
A) $0.40 
B) $0.45 
C) $0.50 
D) $0.55

Quizplus · Accepted Answer

The correct answer is A because the equilibrium price is $0.50, so any price below that will result in a shortage and the need for non-price rationing.

Refer to the Information Provided in Figure 4