Use the figure below to answer the following questions. Figure 6.1.2
-Refer to Figure 6.1.2.What would be the maximum black market price of the good if a price ceiling is set at $10 a unit?
A)$10
B)$15
C)$20
D)50 goods sold at $10 and 50 goods sold at $20
E)50 goods sold at $10 and 50 goods sold at $15

Question

Use the figure below to answer the following questions.  Figure 6.1.2
-Refer to Figure 6.1.2.What would be the maximum black market price of the good if a price ceiling is set at $10 a unit?
A)$10 
B)$15 
C)$20 
D)50 goods sold at $10 and 50 goods sold at $20 
E)50 goods sold at $10 and 50 goods sold at $15

Quizplus · Accepted Answer

The maximum black market price would be the price at which the quantity demanded exceeds the quantity supplied at the price ceiling, which is typically higher than the ceiling price itself. Since the price ceiling is set at $10, and assuming the demand still exceeds supply at this price, the black market price would adjust to a level where the quantity demanded equals the quantity supplied in the black market, which could be $20 or higher depending on the specific demand and supply conditions not provided in the question.

Use the Figure Below to Answer the Following Questions