What is the term for distributing resources among consumers that desire more than what is available?

The term that describes the distribution of scarce resources among consumers who desire more than what is available is indeed rationing. Rationing occurs when there is not enough of a particular good or service to satisfy all consumers' wants at a given price, leading to the need for a method to allocate these limited resources. This can happen in situations where demand exceeds supply, necessitating the establishment of a system to determine who gets what.

Rationing can take various forms, such as government-imposed limits or pricing mechanisms, and it helps ensure that the available supply is distributed based on certain criteria, whether those criteria are need-based, fairness-based, or market-driven. In economic terms, it addresses the imbalance between supply and demand, making it a critical concept in macroeconomics, especially in discussions about scarcity and resource allocation.

Understanding rationing is essential for analyzing how economies manage limited resources and the implications this has for consumers, producers, and overall market functionality.