Rationing Solutions

For items that have shortages, producer firm may ration. In this scenario, demand would outstrip supply. Stores may ration, as they ration now, and set limits for customers. Another solution is 'Rental' or 'Leasing' firms. Rental firms would acquire the goods and customers would rent or borrow an item. Such good could be jewelry, cars, airplanes, boats, and other goods that require extensive resources for production or have severely limited supply. Another solution could be a lottery.

If workers are not available to increase production, increases of productivity would essential to cause demand to create supply.

 

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