Question

Write your question here .(mention five effects of rationing and hoarding)

Answer 1

Explanation:

Since consumers incur smaller than desired expenditures for rationed goods and services, rationing may lead to increased demand for other commodities that can be purchased freely. Secondary economic effects result from hoarding. Hoarding is an increase in demand.

In economics, hoarding is the practice of obtaining and holding scarce resources, with the intention to sell to customers on a high profit in future. Hoarding creates a situation of false scarcity. It is an unethical practice.