Establishing a list of favored customers is an alternative rationing mechanism to price rationing.

Question

Quizplus · Accepted Answer

Establishing a list of favored customers as a rationing mechanism means allocating goods or services preferentially to certain customers over others, instead of using price increases to limit demand, which is known as price rationing. This can be seen in scenarios where suppliers prioritize long-standing or high-volume customers during shortages, rather than raising prices to reduce demand.

Establishing a List of Favored Customers Is an Alternative Rationing