Multiple Choice
Suppose an effective price ceiling is imposed in a market and leads to the development of an illegal black market for the product. How would the price in the black market compare to the price of the product in the legal market, which has an effective price ceiling?
A) The black market price will be higher.
B) The black market price will be lower.
C) The black market price will be the same but the quantity sold will be higher.
D) The black market price will be the same but the quantity sold will be lower.
Correct Answer:
Verified
Correct Answer:
Verified
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