supply is in excess of demand
consumption of the commodity is restricted
prices are set by government above the equilibrum
prices are set by government below the equilibrium
Explanation
No explanation available
Video Explanation
No video available
Post your Contribution
Discussions (9)
Illegal market transactions usually occur “under the table” to let participants avoid government price controls or taxes. The goods and services offered in a black market can be illegal, meaning their purchase and sale are prohibited by law, or they can be legal but transacted to avoid taxes.
B is very much the answer
D is the correct answer... a price below the equilibium price leads to excess demand which black market is one of the effects
The correct answer is D which indicates a maximum price, when government set a maximum price on good, it's a disadvantage to producers and they wouldn't be willing to sell. This reduces the supply of the good and consumers willing to pay above the maximum price, go to black markets to purchase this good
