Five effects of rationing and hoarding
Answers
Answer:
Secondary economic effects result from hoarding. Hoarding is an increase in demand. In the short-run with supply fixed, the price of the hoarded good would increase. This price increase does not necessarily mean that a real scarcity problem exists in the long-run.
Effects of rationing and hoarding are :
•Rationing leads to demand for other commodities that are freely available to the consumers.
•Another problem is the administrative costs of it because of which someone has to pay salaries and the distribution costs of coupons.
•Rationing means to allow the person to buy the commodities at a fixed rate only.
•Hoarding of goods can result in dissatisfaction of a consumer,anger etc.
•It can also affect children.
•Hoarding is a practice of holding some resources with the intension of selling it to customers to obtain a high profit in future.