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In some cases, when governments or regulatory bodies set a maximum price for a good, this leads to black markets. To be effective, the maximum price has to be below the market price that prevails as a result of the interaction of demand and supply. For example, the market price of wheat is $5. Government is regulating the industry and fixes a price of $4 as the maximum price. Supply of wheat is going to reduce and demand is going to increase based on the laws of demand and supply. This will lead to a shortage as people are demanding more wheat than is being supplied. Some consumers will be willing to pay the original market price for wheat ($5) and some will be willing to pay even higher. This leads to a black market where suppliers will provide the willing consumers with wheat at a price higher than the prevailing one.
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Advantages and disadvantages of black market'?
Underground economy can bring a competitive power to economy, it increases the employment, and providing resource to official/formal economy. those are some positive side of black market. on the other hand, some of the negative effects in economy are:the growth of black market means shrinkage of formal economy and it causes tax losses.it brings unfair competition.it causes unreliable statistical data.
When did the black market start?
The Black Market officially began during World War II. The Black Market was illegal, even back then. The official year it began was 1939. The Black Market is still referred to today, in 2014.
What is the market of incomplete information?
Black market
A decrease in the number of sellers in the market causes what?
If the number of sellers in a market increases the
How do you use black market in a sentence?
we have to find the black market and force it to stop selling drugs and guns
What were the immediate causes of the Great Depression?
The immediate cause of the Great Depression was the stock market crash of 1929, also known as Black Tuesday.
Advantages and disadvantages of black market'?
Underground economy can bring a competitive power to economy, it increases the employment, and providing resource to official/formal economy. those are some positive side of black market. on the other hand, some of the negative effects in economy are:the growth of black market means shrinkage of formal economy and it causes tax losses.it brings unfair competition.it causes unreliable statistical data.
What is the causes of market Liquidity?
poor grammar is the causes
What is the Howrse black market?
The black market on Howrse is where you can purchase special items to enhance your game. You can access it via breeding >> black market.
How do you get to the cold market in black 2?
You cannot get to the Cold Market in Black 2.
When was Black Market Activities created?
Black Market Activities was created in 2003.
When did the black market start?
The Black Market officially began during World War II. The Black Market was illegal, even back then. The official year it began was 1939. The Black Market is still referred to today, in 2014.
What is the market of incomplete information?
Black market
Why is black market illegal?
The black market is, by definition, illegal. The term black market is slang for illegal market. It can refer to the trade of illegal items, such as drugs, or it can refer to an illegal method of trading items, such as the black market distribution of human organs.
Is there an existence of black market in Philippines?
There's a black market anywhere. So, yes.
How do you find the black market?
just open the case and look under black market
What causes black streaks on thumbnails?
what causes black streaks on thumbnail
