ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Rationing is a system to allocate goods and services without the use of prices. Rationing is when people receive a ration coupon that entitles them to a certain amount of a product.

Detailed explanation-2: -There are two basic types of non-price rationing, although actual practice often involves some mixture of both. These are queue rationing, and allocation schemes.

Detailed explanation-3: -Non-market or non-price rationing simply means that rationing of those goods and services isn’t dependent on prices or the will of the buyer to pay. A common example of this is queuing for ration (household groceries).

Detailed explanation-4: -A rationing device is a mechanism used to determine who gets what of available limited goods and resources. One of the most commonly used rationing devices used in a capitalistic (market-based) economic system is price. Those who are willing and able to pay the price for a given good (or resource) can purchase it.

Detailed explanation-5: -Goods are allocated in a market system by price rationing. Nonprice rationing will happen whenever there is excess supply in a market. When supply is fixed, price is supply determined. With price rationing, those who are both able and willing to pay for a product get it.