In the short run, it is necessary to nonprice ration a good whenever ________ exists.
A) excess demand
B) excess supply
C) a surplus
D) market equilibrium

Question

Quizplus · Accepted Answer

Excess demand occurs when the quantity demanded of a good exceeds the quantity supplied at the current price, leading to shortages. Nonprice rationing mechanisms, such as waiting lists or lotteries, are often necessary to allocate the limited supply among the excess demand.

In the Short Run, It Is Necessary to Nonprice Ration