Economics Homework. Help?

gold

Yeah, I think it has to be a natural resource thats really hard to get that everybody wants.  My teacher is terrible so Im not really sure but I am going to use your diamond idea.  

you could do your own homework. seeing as your in econ your school obviously isnt hard. lazy ass.

i think youre confused about what an allocating mechanism is. The mechanism itself would be something that helps deal with the fact that there are scarce resources and the only a few people will be able to receive the good. Allocating mechanisms happen naturally in a market through equilibrium prices or must be determined by the firm or government or whoever is in charge of allocating the good.

Thank you so much!  You explained it way better than my teacher.  I get it now. +k to you.

also diamonds are really not as rare as you may think. If debeers the diamond cartel did not stockpile diamonds to create a false shortage they would not be half as expensive. Because of the amount of diamonds in the world they could almost be considered only a semi precious gem. this would be interesting to write about for allocation mechanisms.... indeed.

this day marks the first time ever in my life that being an econ major has payed off

go with this.

and if im interpreting the question right, the price could also be an allocating mechanism. Aston Martins. plenty of people want them, but their price makes them out of the reach for the vast majority of people.

however i do like her example of waiting in lines. think about Black Friday. people wait in lines all night, and this dictaes who has first go at the products. thus it (the line) allocates. the resource. (big screen TVs, computers, etc.)  at the same time the price of an item comes greatly into play.