In relation to prices that would prevail in an uncontrolled market, prices charged by a black market are usually
A)lower, since it is hard for the sellers to locate buyers.
B)lower, since it is hard for the buyers to locate sellers.
C)higher, since black marketers expect compensation for the risk of being caught.
D)higher, since most people enjoy goods more if they are illegal.

Question

Quizplus · Accepted Answer

Black marketers usually charge higher prices because they take into account the risk of being caught and the potential consequences of operating outside of the law. This risk premium is passed on to the buyers in the form of higher prices. Additionally, the limited availability of goods in a black market can create a situation of high demand and low supply, leading to higher prices. Therefore, option C is the most accurate choice.

In Relation to Prices That Would Prevail in an Uncontrolled