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

At a price of $8, the quantity demanded and quantity supplied are the same, which means that there would be no shortage or surplus of the product. This would lead to the least pressure to form a black market because consumers would be able to purchase the product legally without having to pay higher prices on the black market. At prices lower than $8, there would be excess demand and thus pressure to form a black market, while at prices higher than $8, there would be excess supply and thus pressure to sell on the black market.

Refer to the Accompanying Figure