What will I do differently as a buyer in the black market in the long run?
A) I will substitute away from the product.
B) I will substitute toward the product.
C) When a binding price floor exists, I will be willing to pay a higher price.
D) When a binding price ceiling exists, I will be willing to pay a lower price.
E) What I as a buyer do in the long run will be no different from what I do in the short run.

Question

Quizplus · Accepted Answer

As a buyer in the black market, it is likely that the product is illegal or otherwise restricted, meaning there is a higher risk involved in purchasing it. Therefore, over time, a rational buyer would likely substitute away from the product and find a legal or safer alternative.

What Will I Do Differently as a Buyer in the Black