Economics say that there has to be some from of rationing whenever ?
Correct answer: D. there is excess demand
- A. inflation occurs
- B. there are externalities
- C. merit goods are produced
- D. there is excess demand
Explanation
Excess demand means buyers want more than sellers are offering at the current price, so some buyers must go without or compete through higher prices. That allocation of the scarce quantity is rationing.
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