Fig. 165 Rationing.

rationing

a physical method of allocating a product that is in short supply relative to demand (EXCESS DEMAND). In a free market this situation would not arise - the excess demand would be ‘choked off and additional supply encouraged by an increase in the price of the product (see EQUILIBRIUM MARKET PRICE). But if the price is fixed below its equilibrium rate (for example, by the government wishing to hold down the prices of key products such as food), the use of ration tickets provides one practical means of allocating the available supply between consumers on an equitable basis.

In Fig. 165, for example, if the price of a product is fixed by the government at O_r, then it is necessary to ration the amount of output that producers are willing to supply, OQ_r, at this price amongst consumers who are demanding the greater amount of OQ_s. See also BLACK MARKET, PRICE CONTROLS.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

Mentioned in

References in periodicals archive

But rationing continued long after the war was won in 1945.

Rationing is over - but housewives angry; NOSTALGIA @DaveSMorton Newcastle Chronicle - History Photosales - 0191 201 6000

The Islamic Republic never resorted to rationing when hit by US and EU sanctions from 2012 through 2015.

Gov't may start rationing to fight sanctions' impact

The officer said legal action would be taken against those violating the rationing notice.

Water disputes rise in Nakuru over drought

Strict rationing inevitably created a black market.

How wartime rationing put the wind in our sails; Diet that got Britain through its darkest hour had unfortunate side-effect!

They said NHS bosses "tell us there is no rationing, when there clearly is".

Doctors' survey reveals rationing rife in NHS

Early this week, ZCWD announced it was ending the water rationing scheme, except for the one being implemented in so-called transitory sites where at least 2,000 families displaced by the 2013 siege of the city by followers of Moro leader Nur Misuari are still languishing.

Zambo water rationing ends

Most of the political rhetoric and media attention about health care rationing has centered on explicit rationing while implicit rationing has received comparatively little attention.

A descriptive analysis of implicit rationing of nursing care: frequency and patterns in Texas

Water rationing is in effect in all districts of Iloilo City, that is, in Arevalo, Iloilo city proper, Jaro, La Paz, Mandurriao, and Molo.

Water rationing in effect in Iloilo City

" [W] hatever the HMO, there must be rationing and inducement to

Race and rationing

Some directors of nursing (DoNs) spoken to for this article deny care rationing is happening in their district health board (DHB); others admit it is occurring in pockets.

Is care rationing the 'new normal?

Women were especially eager to buy nylons once more while crowds gathered at the biscuit counter of the Fenwicks store in Newcastle following the abolition of points rationing.

Getting a taste of victory; Food rationing officially came to an end 60 years ago. Marion McMullen finds out what it meant to families in Britain

Another misunderstanding is that rationing occurs rarely and only under special circumstances.

Ration consumption or ration production?