BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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incentives.
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commissions.
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prices.
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profits.
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Detailed explanation-1: -price rationing The process by which the market system allocates goods and services to consumers when quantity demanded exceeds quantity supplied.
Detailed explanation-2: -In neoclassical economic theory, the rationing function of price apportions commodities to the individuals willing to pay the most for them. If willingness to pay reflects value, then the rationing function of price maximizes value across all consumers.
Detailed explanation-3: -Scarce goods and services are allocated in a market economy through the influence of prices on production and consumption decisions. Changes in supply or demand cause relative prices to change; in turn, buyers and sellers adjust their purchase and sales decisions.
Detailed explanation-4: -The government can pursue two main types of rationing in economics to tackle crises: non-price rationing and price rationing.
Detailed explanation-5: -Answer and Explanation: The answer is b. Bill Gates purchasing the Mona Lisa for $5 billion. In the rationing function of price, the goods are in limited quantity, and many buyers are eying for it.