The former Soviet Union was known for black markets. An explanation for the existence of these illegal markets is that:
A) goods were not subject to price controls.
B) the government imposed a price ceiling below the equilibrium price.
C) the government imposed a price ceiling above the equilibrium price.
D) all of the above.

Question

Quizplus · Accepted Answer

The government imposed a price ceiling below the equilibrium price, leading to shortages and the emergence of black markets where goods could be sold at higher prices.

The Former Soviet Union Was Known for Black Markets