Question

Explain the effects of rationing

Answer 1

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The effect of such a price rise is to discourage demand, conserve resources, and spread out their use over time. The greater the scarcity, the higher the price and the more the resource is rationed. This can be seen in the market for oil.

Answer 2

The federal government needed to control supply and demand. Rationing was introduced to avoid public anger with shortages and not to allow only the wealthy to purchase commodities. While industry and commerce were affected, individuals felt the effects more intensely.