What happens to price when demand increases and supply may decrease?

"The fresh leg in the energy market’s recovery from the coronavirus shock came as a blast of cold weather boosted demand for power and fuel, while threatening to knock oil production in Texas" (WSJ, Feb. 2021).

Why has the price of oil increased?

"Behind oil’s rally: Huge stockpiles that accumulated in the early stages of the pandemic have winnowed down faster than many people expected (WSJ, Feb. 2021).

What happens with the government rations a good

People complete to obtain the good when government determines who receives it first.

1. They lobby to move up the priority list (WSJ, Feb. 2021).
2. They use influence and connections to "cut" in line (WSJ, Feb. 2021).