Black markets can occur when price ceilings are imposed in a market.Which of the following explains why sellers participate in a black market?
A) Sellers are able to sell the product for a higher than legal price.
B) There are more buyers in the black market than in the legal market.
C) The demand is perfectly elastic in a black market.
D) The demand is perfectly inelastic in a black market.
E) The surplus in the legal market means that many sellers can sell their product in the black market.
Correct Answer:
Verified
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i.create
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