Refer to the accompanying figure.At what price would there be the LEAST pressure to form a black market?

A) $5
B) $8
C) $13
D) $15
E) $20

Question

Refer to the accompanying figure.At what price would there be the LEAST pressure to form a black market?

A) $5 
B) $8 
C) $13 
D) $15 
E) $20

Quizplus · Accepted Answer

At a price of $8, the quantity demanded and the quantity supplied are equal, meaning there is no shortage or surplus in the market. At any price above $8, there will be a surplus, which could lead to a pressure to form a black market. At any price below $8, there will be a shortage, which could also lead to a pressure to form a black market. Therefore, $8 is the price with the least pressure to form a black market.

Refer to the Accompanying Figure