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 ?
Also consistent with the current study, 96%98% of nurses in the European studies rationed at least one of the queried activities during the previous seven shifts (Schubert et al.
ranked and rationed by the degree of "need" or "medical
But CO2 and other social wages are identical in their need to be rationed to ensure that everyone receives enough for a good quality life.
By March 1940 meat was also being rationed with tea following in the July.
But if no more rationed gasoline is sold and gasoline continues to be available at the current unrationed price, then prices will jump four-fold on September 23--from 37 1/2 cents per U.
Potatoes and peas were dropped from the list of rationed foods, meaning Cubans can buy as much of the products as they want--as long as they're willing to pay as much as 20 times more than they used to.
Soon after, all meat was rationed and the restrictions spread to other foodstuffs and clothes.
Earlier this year Wal-Mart-owned wholesaler Sam's Club rationed rice.