What Is the Incentive to Create a Black Market When

Multiple Choice

What is the incentive to create a black market when a binding price ceiling exists?

A) A black market emerges because sellers have a surplus that they need to sell.
B) A black market emerges because sellers want a market where they can sell lower-quality products.
C) A black market emerges because sellers want a market where they can sell higher-quality products at higher prices.
D) A black market does not emerge because sellers are content to sell at the lower price.
E) A black market emerges because buyers who have a low opportunity cost are seeking out the product.