Answer to Question #169795 in Microeconomics for Mueez

Question

Explain"even though parking meters may yield little or no net revenue, they should nevertheless be retained because of the rationing function they perform,"

Answer 1

Even parking meters that levy users have a useful parking-spot rationing function, when the hour is up, the car owner must either move the car or rush out to feed the meter to avoid receiving a ticket. The parking area is rationed in this case by a meter’s timing gadget rather than money or ration coupons.