Class 33: Rationing through the price system

Today, Mr Rizzo talks more about the idea of rationing and the advantage and disadvantages of non-price system and price system. The non-price system fails greatly because it decentivizes people's motivation to produce more. However, rationing through price system allows efficient flow of low value products to people who value them most. All individuals through this mechanism can eventually get what they want without any law enforcement or central planning.