What will an individual do differently as a buyer in the black market in the long run?
A) He or she will substitute away from the product.
B) He or she will substitute toward the product.
C) When a binding price floor exists,he or she will be willing to pay a higher price.
D) When a binding price ceiling exists,he or she will be willing to pay a lower price.
E) What he or she does as a buyer in the long run will be no different from what he or she does in the short run.

Question

Quizplus · Accepted Answer

In the long run, an individual may choose to substitute away from buying from the black market due to the risks involved such as being caught by the authorities or the possibility of buying low-quality or counterfeit goods. The individual may seek out legal and safer options for purchasing the product, leading to a shift in their buying behavior.

What Will an Individual Do Differently as a Buyer in the Black