Question

Prices can achieve the rationing function when: A. price controls are in place and ration coupons are used too. B. prices are inflexible. C. they are controlled by the government. D. prices are flexible

Answer 1

Prices can achieve the rationing function when prices are inflexible .

Option B

Explanation:

Prices can be rationed because prices are inflexible.

The proposal that certain prices slowly adjust to market deficiencies or surpluses  

This is most critical for short-term and short-term global market research macroeconomic behavior. The positive trend of the short term allocative efficiency curve is largely because of inflexible markets (also referred to as static prices or sticky costs).

In commodity markets, prices are likely to become the most inflexible, particularly on the labor market as well as the least inflexible, with the commodity markets sliding between the two.