Economics B A-Level
Incentives and rationing
What Incentives and rationing means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Incentives and rationing
Check what you remember
Read the wording for your board, then hide it and explain Incentives and rationing in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
A rising price provides an incentive for producers to extend the quantity supplied while simultaneously contracting the quantity demanded.
Topics that use Incentives and rationing
- Price determination (Pearson Edexcel A-Level)
Related terms
- Ceteris paribus
- Excess demand
- Excess supply
- Market dynamics
- Market equilibrium
- Market-clearing price
- Non-price determinants
- Price mechanism
Using Incentives and rationing in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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