Refer to the accompanying figure to answer the next two questions.

-You would expect there to be many customers for a black market good when the opportunity cost of finding the good under a:
A) binding price floor is high.
B) binding price floor is low.
C) nonbinding price ceiling is high.
D) binding price ceiling is low.
E) binding price ceiling is high.

Question

Refer to the accompanying figure to answer the next two questions.
 
-You would expect there to be many customers for a black market good when the opportunity cost of finding the good under a:
A) binding price floor is high. 
B) binding price floor is low. 
C) nonbinding price ceiling is high. 
D) binding price ceiling is low. 
E) binding price ceiling is high.

Quizplus · Accepted Answer

When a binding price ceiling is high, it means the legal price is set below the equilibrium price, leading to a shortage. This creates a high opportunity cost for consumers trying to find the good legally, increasing demand in the black market.

Refer to the Accompanying Figure to Answer the Next Two