-When are black markets likely to arise?
A) when the government removes a price floor
B) when the government enforces a price ceiling
C) when there is a surplus of a good
D) when the quantity supplied of a good exceeds the quantity demanded

Question

-When are black markets likely to arise?
A) when the government removes a price floor 
B) when the government enforces a price ceiling 
C) when there is a surplus of a good 
D) when the quantity supplied of a good exceeds the quantity demanded

Quizplus · Accepted Answer

Black markets are likely to arise when the government enforces a price ceiling because the artificially low prices can lead to shortages, prompting sellers and buyers to engage in transactions outside of the regulated market to obtain or sell goods and services at higher prices.

-When Are Black Markets Likely to Arise