Question

What are 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

$\huge\mathtt\purple{Answer}$

The rationing function of the price mechanism

Whenever resources are particularly scarce, demand exceeds supply and prices are driven up. The effect of such a price rise is to discourage demand, conserve resources, and spread out their use over time.