One would expect there to be many customers for a black market good when the opportunity cost of finding the good under a
A) binding price floor is high.
B) binding price floor is low.
C) nonbinding price ceiling is high.
D) binding price ceiling is low.
E) binding price ceiling is high.

Question

Quizplus · Accepted Answer

A black market typically thrives when the opportunity cost of legally obtaining a good is high, such as under a binding price ceiling that creates shortages by setting the price below the equilibrium. This makes it difficult for consumers to purchase the good legally, increasing the demand for black market alternatives.

One Would Expect There to Be Many Customers for a Black