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Chapter 4: Q. c (page 81)

How might California cities alternatively have developed a rationing-by-queues approach using the internet?

Short Answer

Expert verified

Using real-time settlements system

Step by step solution

01

Step1. Introduction

The demand and supply in a market can not always be equal to eachother and equilibrium can not always be attained this way.

Prices perform the rationing function in such scenarios.

02

Step2. Explanation

California cities can employ a real time settlement system for all the transactions and exchanges which will continue update and match the demand and supply in the market. In this way, the rationing function of the prices can be performed.

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