A long line at the campus bookstore at the beginning of the term is an example of
A) price rationing.
B) an ineffective price ceiling.
C) a non-price rationing device.
D) an ineffective price floor.

Question

Quizplus · Accepted Answer

A long line at the campus bookstore indicates that the bookstore is using a non-price rationing device, such as first-come, first-served, instead of adjusting prices to balance supply and demand. Students who are willing to wait in line are able to purchase the books they need, regardless of the price. This suggests that the bookstore is not effectively using price rationing (choice A) or price ceilings/floors (choices B and D) to manage demand for textbooks.

A Long Line at the Campus Bookstore at the Beginning