Black Markets Can Occur When Price Ceilings Are Imposed in a Market.Which

question 60

Multiple Choice

Black markets can occur when price ceilings are imposed in a market.Which of the following explains why sellers participate in a black market?

• A) Sellers are able to sell the product for a higher than legal price.
• B) There are more buyers in the black market than in the legal market.
• C) The demand is perfectly elastic in a black market.
• D) The demand is perfectly inelastic in a black market.
• E) The surplus in the legal market means that many sellers can sell their product in the black market.

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Definitions:

Egocentrism

The inability to differentiate between one's own perspective and someone else's perspective, often observed in early childhood development.

Imaginary Audience

The aspect of adolescent egocentrism that involves attention-getting behavior motivated by a desire to be noticed, visible, and “onstage.”

Zone of Proximal Development

Vygotsky's concept indicating the difference between what a learner can do without help and what they can do with help or guidance.

Pretend Play

A form of play in which children use their imagination to create scenarios, roles, and activities, essential for cognitive and social development.