If the Government Imposes a Price Ceiling for Some Product

Multiple Choice

If the government imposes a price ceiling for some product, and a black market subsequently develops that gains control of all of the reduced output of the product, then

A) the quantity demanded will exceed quantity supplied at the black market price.
B) the black market price will be lower than the ceiling price.
C) consumers will be better off than they would be in the absence of the black market.
D) excess profits will flow back to consumers.
E) the black market price will be higher than the free- market equilibrium price.