In a country in which the government uses price controls to attempt to control inflation,nonmoney rationing devices will be needed to resolve shortages.

Question

Quizplus · Accepted Answer

Price controls can lead to shortages as suppliers may not find it profitable to produce goods at the government-set price. Nonmoney rationing devices, such as waiting lists or coupons, may be used to distribute the limited supply of goods among consumers.

In a Country in Which the Government Uses Price Controls