Why is a consumer likely to be worse off when a product that he or she consumes is rationed?

1 answer:

5 0

When the price of the good is fixed at a level below the current (equilibrium) price, there will be a shortage of the good and the good will have to be effectively rationed. As in the question above, the consumer is worse off because she is not able to attain her utility maximizing point.

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Of the automobiles produced at a particular plant, 40% had a certain defect. suppose a company purchases five of these cars. wha

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Answer:

The expected value might go down by $308.

Explanation:

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Why is a consumer likely to be worse off when a product that he or she consumes is rationed?​

Why is a consumer likely to be worse off when a product that he or she consumes is rationed?