Glossary entry (derived from question below)
English term or phrase:
Demand rationing
English answer:
limiting the demand for a product on purpose
Added to glossary by
Nadia Ayoub
Jun 8, 2011 15:01
12 yrs ago
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English term
Egypt
Never lost for words!
Native in: Arabic
Works in: English to Arabic, Arabic to English, Italian to Arabic, and 4 more.
Demand rationing
English
Social Sciences
International Org/Dev/Coop
With the possibility of high prices eventually paving the way for some demand rationing, market prices may drift lower in 2011/12, although much will depend on the final harvest outcomes.
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Thank you for your help!
Responses
+1
1 min
Liz Dexter (was Broomfield)
United Kingdom
United Kingdom
Native in English
&
English
Works in field
United Kingdom
Proofreading, editing & localisation
Native in: English (Variants: US, Australian, Canadian, New Zealand, British, UK)
Works in: English
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:
20
Selected
limiting the demand for a product on purpose
Demand rationing means limiting the demand for something, usually on purpose, for example by raising the prices. This means fewer people will want to buy it, which is useful if you haven't produced enough as it helps manage expectations. It can be used for products, e.g. foodstuffs, or services, e.g. mortgages.
Note from asker:
| Thank you! |
Peer comment(s):
| agree |
jccantrell
: Have to go with the first one.
25 mins
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Thank you! Much appreciated!
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| agree |
Thayenga
: same here. :)
1 hr
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Thank you - and that's kind of you both to say!
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| disagree |
Stephanie Ezrol
: In this context, it is the high prices that limit the demand. Many people are "rationed" because they can not pay the high price/
1 day 11 hrs
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But the high prices are "paving the way" for demand rationing, i.e. preparing the environment but someone else is doing the rationing, surely?
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4 KudoZ points awarded for this answer.
Comment: "Many thanks!"
2 mins
artificially restricting the demand (see below)
In economics, rationing is an artificial restriction of demand. It is done to keep price below the equilibrium (market-clearing) price determined by the ...
Rationing in the United Kingdom - Rationing and licensing - Road space rationing
en.wikipedia.org/wiki/Rationing - En caché - Similares
Rationing in the United Kingdom - Rationing and licensing - Road space rationing
en.wikipedia.org/wiki/Rationing - En caché - Similares
Note from asker:
| Thank you! |
+2
26 mins
Martin Riordan
Brazil
Brazil
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English
Works in field
Brazil
Brazilian lawyer - 40+ years in Brazil
Native in: English (Variants: US, Australian, Canadian, New Zealand, Scottish, British, UK, Irish) 
, Portuguese (Variants: Angolan, European/Portugal, Brazilian, Mozambican) 
Works in: Portuguese to English, English to Portuguese, English, and 1 more.
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:
8
demand will be limited ("rationed") by high prices
Rationing normally implies some artificial control, usually of supply.
However, in the context above , "demand rationing" means that demand will be reduced, not by artificial means, but by market forces, as prices rise. The higher the price, the less demand there is for a product (normally).
See the link below for usage of the term.
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Note added at 46 mins (2011-06-08 15:47:41 GMT)
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The appearance of the word "harvest" in the context information implies that the subject is some kind(s) of agricultural grains. The market for such products is usually very competitive, with many sellers (farmers) and many buyers. In such a market, given the volumes involved, it is almost impossible for any given body to exercise rationing by "cornering the market". It is usually Mother Nature who determines supply, and demand is affected (but not controlled) by factors such as the subsidized US corn-ethanol program.
However, in the context above , "demand rationing" means that demand will be reduced, not by artificial means, but by market forces, as prices rise. The higher the price, the less demand there is for a product (normally).
See the link below for usage of the term.
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Note added at 46 mins (2011-06-08 15:47:41 GMT)
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The appearance of the word "harvest" in the context information implies that the subject is some kind(s) of agricultural grains. The market for such products is usually very competitive, with many sellers (farmers) and many buyers. In such a market, given the volumes involved, it is almost impossible for any given body to exercise rationing by "cornering the market". It is usually Mother Nature who determines supply, and demand is affected (but not controlled) by factors such as the subsidized US corn-ethanol program.
Note from asker:
| Thank you! |
Peer comment(s):
| agree |
Yasutomo Kanazawa
: Yes, in this context.
20 hrs
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Thank you!
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| agree |
Stephanie Ezrol
1 day 11 hrs
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Thank you!
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Reference comments
7 mins
Michael Powers (PhD)
United States
United States
Native in English
&
English
Specializes in field
United States
US Court Cert. 1980 Ph.D. 1981
Native in: English
Works in: Spanish to English, Portuguese to English, English to Spanish, and 2 more.
Reference:
Internet source on "demand rationing:
Baby nutrition should focus on "demand rationing" - Parenting News ... May 16, 2011 ... The baby is in a growth phase is concerned, what is a reasonable supply of nutrients? Maternal and Child Nutrition Branch of the Chinese ...
www.f-paper.com/?i257588-Baby-nutrition...demand-rationing - Cached
www.f-paper.com/?i257588-Baby-nutrition...demand-rationing - Cached
Note from asker:
| Thank you Michael :) |
5 days
Stephanie Ezrol
United States
United States
Native in English
&
English
United States
French to English, English to English
Native in: English
Works in: English, French to English, French Middle (ca.1400-1600) to English
Related KudoZ points
:
12
Reference:
Demand Rationing Seen as Food Prices Soar
Sunday, 13 Feb 2011 06:10 PM
As commodity markets once again show signs of plateauing after their latest gains, the focus is shifting toward the threat that soaring grain, metal and energy costs could begin to erode demand.
Food prices are already at record highs. Manufacturers like Kraft Foods Inc and PepsiCo have sounded plans to pass on to consumers the high commodity costs squeezing their profits.
Global reaction to higher prices has varied. High food prices were one factor that prompted people in Tunisia and Egypt revolted to topple presidents, but consumers in the West have taken the pain more quietly.
The end result could be rationing, which ultimately should reduce demand.
"It's not a question of whether there'll be demand destruction, it's a question of when," said Adam Sarhan, founder of Sarhan Capital, the New York-based financial advisor.
"Eventually, you're going to reach a tipping point and people are going to say enough is enough and start rationing what they buy."
http://www.moneynews.com/InvestingAnalysis/commodities/2011/...
Sunday, 13 Feb 2011 06:10 PM
As commodity markets once again show signs of plateauing after their latest gains, the focus is shifting toward the threat that soaring grain, metal and energy costs could begin to erode demand.
Food prices are already at record highs. Manufacturers like Kraft Foods Inc and PepsiCo have sounded plans to pass on to consumers the high commodity costs squeezing their profits.
Global reaction to higher prices has varied. High food prices were one factor that prompted people in Tunisia and Egypt revolted to topple presidents, but consumers in the West have taken the pain more quietly.
The end result could be rationing, which ultimately should reduce demand.
"It's not a question of whether there'll be demand destruction, it's a question of when," said Adam Sarhan, founder of Sarhan Capital, the New York-based financial advisor.
"Eventually, you're going to reach a tipping point and people are going to say enough is enough and start rationing what they buy."
http://www.moneynews.com/InvestingAnalysis/commodities/2011/...
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