-Refer to the above figure.A price ceiling has been set at $P _ { 1 }$ ,and a black market has opened.The equilibrium black market price will be
A)below $P _ { 1 }$
B)between $P _ { 1 }$ and $\mathrm { P } _ { 3 }$
C)above $\mathrm { P } _ { 3 }$
D) $P _ { 2 }$

Question

-Refer to the above figure.A price ceiling has been set at $P _ { 1 }$ ,and a black market has opened.The equilibrium black market price will be
A)below $P _ { 1 }$ 
B)between $P _ { 1 }$ and $\mathrm { P } _ { 3 }$ 
C)above $\mathrm { P } _ { 3 }$ 
D) $P _ { 2 }$

Quizplus · Accepted Answer

The equilibrium black market price will be between $P _ { 1 }$ and $\mathrm { P } _ { 3 }$ because the quantity supplied at $P _ { 1 }$ is less than the quantity demanded, so there will be a shortage and the price will rise until it reaches equilibrium.

-Refer to the Above Figure P1P _ { 1 }P1​ ,And a Black Market Has Opened

-Refer to the Above Figure $P _ { 1 }$ ,And a Black Market Has Opened