Controlled distribution of a limited supply of a good or service?

• A. Market structure
• B. Rationing
• C. Equilibrium quantity
• D. Black market

Answer: (B)

Rationing is the practice of assigning limited resources according to a rule rather than letting price signals alone decide who gets them. When supply is scarce or policy prevents price from clearing the market, authorities or organizations impose rules—such as coupons, quotas, or priority access—to allocate the available amount. This aims to prevent hoarding and ensure some fairness in distribution, even though the total supply is small.

Market structure describes how firms are organized and compete, not how scarce goods are distributed. Equilibrium quantity is the point where supply equals demand at a given price, which is a theoretical outcome under price-based markets, not the method of distributing scarce goods. A black market is illegal trading that can emerge when controls or shortages push demand into illegal channels, but it’s a consequence of scarcity and regulation rather than the formal method of distribution itself. The scenario described aligns with rationing.