Nonprice rationing devices are required
A) because the price system does not allocate resources efficiently.
B) when there are price floors but not when there are price ceilings.
C) so that prices will go back to equilibrium.
D) to allocate goods when there is a price ceiling.

Question

Quizplus · Accepted Answer

Nonprice rationing devices are required to allocate goods when there is a price ceiling. Price ceilings are government-imposed limits on how high a price can be charged for a product or service, which can create a shortage of that product or service, and nonprice rationing devices are used to allocate the limited amount of goods or services among consumers. However, nonprice rationing devices are not required when there are price floors, which are government-imposed minimum prices for goods or services.

Nonprice Rationing Devices Are Required