The essential function of the price mechanism is the smooth clearance of the available supply of an economic good in a market. An economic good is a good whose supply is scarce in relation to demand ‘scarcity’ implying simply that ..
How are black market prices determined ? Do they tend to be lower than the normal price as it would be in a free market? What tends to be the output of a commodity that finds its way into black markets? Does it exceed or fall short of the norm..
While the above analysis raises certain interesting issues, the manner in which the problem is handled leaves room for further reflection. In general, the extension of demand and supply curves, such as is done, to cover the black market area i..
What does all this lead to? How are our generalizations concerning black markets affected by these considerations? In the first place, since the black market area is dominated by stronger buyers and since, in the absence of intercommunicat..