In the Former Soviet Union Distributing Scarce Consumer Goods Was

question 183

Multiple Choice

In the former Soviet Union distributing scarce consumer goods was accomplished by

• A)higher prices which eliminated some potential consumers.
• B)making the consumer stand in a long line for hours if not days.
• C)the government simply printing more money.
• D)None of the choices are true.

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Definitions:

Equilibrium

A state where supply equals demand in a market, resulting in no inherent force for price change.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, also known as the market-clearing price.

Shortage

A scenario in which the need for a product surpasses the amount available at a particular price.

Quantity Demanded

The total amount of goods or services that consumers are willing and able to purchase at a given price level in a given period.