How does a free market allocate scare goods and services by rationing by price?

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  • 1 decade ago
    Favorite Answer

    By rationing by price, meaning that the scarce goods and services are sold at a higher price, in order to allocate them adequately.

  • Anonymous
    1 decade ago

    increase the price. law of supply and demand. They higher the demand for a product the higher the price will be and vise versa.

  • 4 years ago

    Not quite sure how to answer this

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