A “black market” is a place where people make illegal trades in goods and services. For instance, during the Soviet era, it was common for American tourists to take a few extra pairs of Levi’s jeans when visiting the Soviet Union: They would sell the extra pairs at high prices on the illegal black market.
Consider the following claim: “Price-controlled markets tend to create black markets.” Let’s illustrate with the following figure. If there is a
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
