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Several Strategies Exist for Managing the Supply and Demand of Services

question 74

Essay

Several strategies exist for managing the supply and demand of services. List the strategies for managing each and give an example of each strategy.


Definitions:

Price Ceiling

A government-imposed limit on the price charged for a product, intended to prevent the price from rising to a certain level.

Maximum Price

A price ceiling set by a government or regulatory body, above which a particular good or service cannot be sold.

Government

The governing body of a nation, state, or community which is responsible for making and enforcing laws and managing public resources and affairs.

Rationing Mechanism

a system or policy by which scarce goods or services are distributed.

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