This is seen, for example, at amusement parks, where one pays a price to get in and then need not pay any price to go on the rides. For example, scarce products can be rationed using queues. Rationing using ration stamps is only one kind of non-price rationing. Traditionalist economists argue, however, that high prices act to reduce waste of the scarce resource while also providing incentive to produce more. High prices, especially in the case of necessities, are undesirable with regard to those who cannot afford them. An example of rationing in the face of rising prices took place in the various countries where there was rationing of gasoline during the 1973 energy crisis.Ī reason for setting the price lower than would clear the market may be that there is a shortage, which would drive the market price very high. Thus, rationing can be complementary to price controls. Rationing is often done to keep price below the market-clearing price determined by the process of supply and demand in an unfettered market. There are many forms of rationing, although rationing by price is most prevalent. Rationing controls the size of the ration, which is one's allowed portion of the resources being distributed on a particular day or at a particular time. Rationing is the controlled distribution of scarce resources, goods, services, or an artificial restriction of demand.
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