Multiple Choice
In a free market, if there is an increase in demand which cannot be met immediately, prices tend to rise. This allocates the goods to those who are willing and able to pay the most. Economists call this
A) quantity allocation.
B) price rationing.
C) equity.
D) a black market.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q49: A change in the distribution of income
Q50: Which of the following might shift the
Q51: How and why are shortages and surpluses
Q52: What is meant by the income and
Q53: The cost of pressing DVDs has fallen.
Q55: House prices, like all prices, are determined
Q56: The price of blue staplers rises and
Q57: A good harvest will cause<br>A) a rightward
Q58: The following diagram shows the demand for
Q59: If a determinant of supply changes, other