-Refer to the above figure. A price ceiling has been set at P₁, and a black market has opened. The equilibrium black market quantity will be
A)below Q₁.
B)above Q₃.
C)between Q₁ and Q₃.
D)Q₂.

Question

-Refer to the above figure. A price ceiling has been set at P₁, and a black market has opened. The equilibrium black market quantity will be
A)below Q₁. 
B)above Q₃. 
C)between Q₁ and Q₃. 
D)Q₂.

Quizplus · Accepted Answer

A price ceiling set below the equilibrium price creates a shortage, leading to a black market where the quantity traded is between the quantity supplied at the ceiling price (Q₁) and the equilibrium quantity (Q₃).

-Refer to the Above Figure