rationing

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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 Or, then it is necessary to ration the amount of output that producers are willing to supply, OQr, at this price amongst consumers who are demanding the greater amount of OQs. See also BLACK MARKET, PRICE CONTROLS.

References in periodicals archive ?
three-tiered healthcare system that rations severely at the bottom and
but the most important thing is that the citizen's in-kind share for goods does not decrease from his rations.
Apart from the weekly ration (seven days, not five) there was a monthly allowance of 'points' which could be used for certain tinned or bottled goods etca which were allocated different values according to their 'luxury' rating.
Referring to the story that appeared in MAIL TODAY on Monday highlighting the cases of people not getting benefits of cheap rations, Yadav said, " The Department has taken note of the cases referred in the story for investigation, as the households have candidly stated that their new cards could not be issued due to lack of supporting documents.
Whenever the powerful are forced to grant social wages, they insist on having a two-tier system: the smallest amount of rations possible for the general public; and, a higher quality product that goes to those who pay.
The number of people who registered for food rations is estimated at around 34 million, according to latest statistics from Iraq's Ministry of Trade.
50 today) * Eggs -one per adult * Dried eggs - one packet a month * Margarine - 4oz * Milk - two pints * Tea - 2oz * Sweets - 3oz Despite all the difficulties there was always plenty of vegetables and fish, which were off ration.
Tea was still on ration until 1952 while 1953 saw the end of sugar and egg rationing and in 1954 cheese and meats finally came off ration as well.
His comments emerged in the very week that one of the world's most heroic and inspirational politicians was sentenced to another 18 months of living on rations.
Does Duncan, the Shadow leader of the Commons, even know what rations mean?
The firm have created army rations of chocolate chip cake and fruit salad in syrup for British soldiers abroad.
FRONTLINE Merseyside troops fighting the Taliban in Afghanistan have not been provided with any fresh rations for 40 days.