When Prices Are Used as a Rationing Device, Goods That

question 6

Multiple Choice

When prices are used as a rationing device, goods that are relatively more scarce than they used to be will have

• A) greater demand.
• B) lower excess demands.
• C) higher prices.
• D) long queues.

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Definitions:

Random Error

Variability in data that arises from unpredictable fluctuations in the measurement process.

Null Hypothesis

A statement in statistics that proposes there is no significant effect or difference between specified populations, any observed difference being due to sampling or experimental error.

Observed Difference

The apparent discrepancy or variation between two groups or conditions in an experiment or study.

Random Error

An unpredictable variation in data or experimental results, which occurs without a discernible pattern.