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:

British Pounds

The official currency of the United Kingdom, also known as GBP or Sterling, used as a benchmark currency internationally.

Indirect Equivalent

A term referring to the conversion or comparison of something through an intermediary or secondary measure.

Euro

A common European currency adopted in January 2002 by most of the members of the European Union.

Indirect Quote

A way of quoting exchange rates in foreign exchange markets, representing the amount of foreign currency required to buy one unit of the domestic currency.