What method is used to ration goods in a market economy?

In a market economy, goods are rationed primarily through the price mechanism. Prices are determined by supply and demand; when demand exceeds supply, prices rise, which discourages consumption and allocates the limited goods to those willing to pay more. Conversely, when supply exceeds demand, prices fall, encouraging consumption and adjusting the market balance. This dynamic allows for efficient allocation of resources without the need for central planning.