Suppose that a price ceiling is imposed because the market equilibrium is perceived to be too high. Which of the following rationing schemes makes no sense?
a. rationing fish to those willing to pay the highest price
b. rationing fish by means of a lottery
c. rationing fish to the elderly first
d. rationing fish on a first-come, first-served basis
e. rationing fish according to family size
A
Economics
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The price elasticity of demand for cigarettes is 0.4. If government wants to reduce smoking by 10 percent, by how much should it raise the price of cigarettes by imposing a tax?
A) by 10 percent B) by 20 percent C) by 25 percent D) by 50 percent
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The actual real interest rate and the expected real interest rate will be identical if
A) pe = p. B) pe > p. C) pe < p. D) none of the above
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