When do rationing and shortage gaming occur?
A) Supply exceeds demand.
B) Demand exceeds supply.
C) Government contracts are awarded.
D) Transportation workers go on strike.
E) Marginal revenue exceeds marginal cost.

Question

Quizplus · Accepted Answer

Rationing and shortage gaming occur when demand exceeds supply. This can happen in situations where there is a sudden increase in demand, such as during a natural disaster, or when supply is constrained due to factors like production shortages or disruptions to the supply chain. In these situations, businesses and individuals may engage in behavior like hoarding, price gouging, and black market activity in an attempt to secure goods and supplies that are in short supply.

When Do Rationing and Shortage Gaming Occur