in exchange for manufactured goods can also be shown. To solve the price scissors problem, China imposed production quotas on rural households, and urban wages were set low in order to maintain low urban food demand. In the 1950s, the grain rationing system was put in place, in which urban families were given grain coupons. The amount that the urban households could purchase was the relative price between grain and other goods, and was determined by the state. Any consumption that exceeded this could be purchased, but at the market price. References Chinese economic policy Grain production Grain trade Rationing by country Regulation in China