Refer to the accompanying figure. At what price would there be the least pressure to form a black market?
A) $5
B) $8
C) $13
D) $15
E) $20

Question

Refer to the accompanying figure. At what price would there be the least pressure to form a black market? 
A) $5 
B) $8 
C) $13 
D) $15 
E) $20

Quizplus · Accepted Answer

The least pressure to form a black market would occur at the equilibrium price, where the quantity demanded equals the quantity supplied. In the accompanying figure, this occurs at a price of $8. At any price below $8, there would be excess demand, leading individuals to turn to the black market to obtain the good. At any price above $8, there would be excess supply, leading sellers to turn to the black market to sell their surplus. Therefore, choice B is the best answer.

Refer to the Accompanying Figure