Answered

The latest Taylor Swift album is available for download at [tex]$13.99. Is this price a rationing device?

A. No, the album will be sold to anyone having the required number of dollars.
B. No, for price to be a rationing device, it must be so high that only one unit of the item is sold.
C. Yes, since that is a reasonable price.
D. Yes, because the album will only be purchased by people who are willing and able to pay $[/tex]13.99.



Answer :

GinnyAnswer

Final answer:

The [tex]$13.99 price of the Taylor Swift album acts as a rationing device based on willingness and ability to pay.


Explanation:

Yes, the price of the latest Taylor Swift album at $[/tex]13.99 acts as a rationing device because it determines who can purchase the album based on their willingness and ability to pay the set price.

In this case, option d. is correct because the album will only be purchased by individuals who are willing and able to pay the $13.99 price.

The law of demand states that at higher prices, consumers tend to buy less of a product, emphasizing the role of price as a rationing device in markets.


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