Rationing goods on the basis of price is a direct result of
A) scarcity.
B) queuing.
C) government intervention.
D) the profit motive.

Question

Quizplus · Accepted Answer

Rationing goods on the basis of price is a direct result of scarcity. When goods are scarce, their availability is limited, making them valuable. As a result, sellers can charge higher prices, and buyers can only purchase what they can afford. This leads to rationing by price, where those who can afford to pay the higher prices will consume more of the good, while those who cannot afford it will consume less or none at all.

Rationing Goods on the Basis of Price Is a Direct