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Which allocation method can lead to long queues and wasted time during shortages caused by price ceilings?

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Question

Which allocation method can lead to long queues and wasted time during shortages caused by price ceilings?

Options

  • Rationing

  • Seller’s preference

  • First-come, first served.

  • Lottery system

MCQ
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Solution

First-come, first served.

Explanation:

Under this method, those who arrive first get the goods, often causing queues.

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