rationing


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Related to rationing: Office of War Information
Rationingclick for a larger image
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 ?
The Islamic Republic never resorted to rationing when hit by US and EU sanctions from 2012 through 2015.
The officer said legal action would be taken against those violating the rationing notice.
They said NHS bosses "tell us there is no rationing, when there clearly is".
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.
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.
Water rationing is in effect in all districts of Iloilo City, that is, in Arevalo, Iloilo city proper, Jaro, La Paz, Mandurriao, and Molo.
" [W] hatever the HMO, there must be rationing and inducement to
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.
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.
Another misunderstanding is that rationing occurs rarely and only under special circumstances.