An explanation for the existence of black markets is:
A) a price ceiling below the equilibrium price.
B) a price ceiling above the equilibrium price.
C) a price floor above the equilibrium price.
D) a price floor below the equilibrium price.

Question

Quizplus · Accepted Answer

A price ceiling below the equilibrium price creates a shortage, leading to black markets as people are willing to pay more than the ceiling price to obtain the good.

An Explanation for the Existence of Black Markets Is