What is the effect on poor people if price is a rationing device?

When price acts as a rationing device, poor people are often disproportionately affected because they have limited financial resources to access essential goods and services. As prices rise, they may be unable to afford basic necessities like food, housing, or healthcare, leading to increased hardship and potential deprivation. This can exacerbate existing inequalities, as wealthier individuals can still afford these goods while low-income individuals are priced out. Consequently, the reliance on price as a rationing mechanism can deepen poverty and reduce overall quality of life for vulnerable populations.