Macroeconomics
Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 1, Problem 21QP
To determine

The need for rationing device in the absence of scarcity.

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Explain the link between scarcity and the need for a rationing device
How to interpret this solution?
How would you choose between a diamond and a bottle of water in the different scenarios described in the video? You MUST explain your answer using economic concepts you have learned in the course so far.  What did you or your family do during the severe shortage of toilet paper at the beginning of the pandemic in 2020?  How would you value a bag of 12 toilet paper compared to a diamond back then? Would it be different compared to during normal circumstances? Explain your answer.
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