Scalping and other black market activities arise when

Question

Quizplus · Accepted Answer

Scalping and other black market activities arise when the prices of goods are restricted to levels below equilibrium prices. This leads to a shortage of the goods in the market, which creates an opportunity for those who are willing to pay higher prices to get access to the goods. This is why scalpers are able to make a profit by buying tickets for events and then reselling them at a higher price. The restriction on prices also leads to other forms of black market activity, such as smuggling and counterfeiting.

Scalping and Other Black Market Activities Arise When