Price ceilings will likely result in the growth of black markets.

Question

Quizplus · Accepted Answer

When prices are artificially lowered below the market equilibrium by price ceilings, a shortage of goods or services may occur as quantity demanded exceeds quantity supplied. This shortage creates an opportunity for sellers in the market to charge higher prices for the same goods, causing a black market to emerge. Therefore, price ceilings are likely to result in the growth of black markets.

Price Ceilings Will Likely Result in the Growth of Black