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What Is a Black Market? Under What Conditions Does Such

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What is a black market? Under what conditions does such a market emerge? How do the prices charged on the black market compare to the conditions that exist in the legal market?


Definitions:

Vertical Axis

The y-axis in a graph, which typically shows the range of values for the variable measured.

Pure Competition

A market structure featuring a large number of small firms selling identical products, with no single firm able to influence market price.

Differentiated Products

Goods and services that are distinct from those offered by competitors due to unique characteristics, branding, quality, or features.

Market Price

The current value at which an asset or service can be bought or sold in an open market.

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