The Government Imposes a Price Ceiling on Sugar That Is

question 23

Multiple Choice

The government imposes a price ceiling on sugar that is above the market price. You are asked to suggest a rationing scheme that will minimize the misallocation of resources. You suggest

• A) using rationing coupons that cannot be resold.
• B) using rationing on a first-come, first-served basis.
• C) using rationing coupons that can be resold.
• D) that no rationing system will be necessary.

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