A black market could arise as a result of:

Name: A black market could arise as a result of:
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Question

Quizplus · Accepted Answer

The imposition of a legal price ceiling above the equilibrium price leads to an excess demand for the good, which cannot be met by the legal suppliers who cannot offer the good at the equilibrium price. This may create an opportunity for illegal suppliers to enter the market and offer the good at a higher price than the legal price ceiling. This creates a black market where transactions occur illegally.

A Black Market Could Arise as a Result Of