6.3+Outline+and+Questions

=A supply shock is a sudden shortage of a good such as gasoline or wheat. Supply shocks creates a problem of excess demand because suppliers can no longer meet the needs of consumers. The immediate problem is how to divide up the available supply among consumers.= =Rationing, or dividing up goods and services using criteria other than price, is expensive and can take along time to organize. Rationing is the basis of central planning......= =When people conduct business without regard for government controls on price or quantity, they do business on the black market.= =Questions=