Explain black marketing' as a direct Entre consequence of price c… - Vidyadip

Question

Explain black marketing' as a direct Entre consequence of price ceiling.

✓

Answer

Black marketing may be termed as a direct consequence of price ceiling.
Black market is a market under which the commodity is bought and Sold at a price higher than the maximum fixed by the Government.
It arises due to presence of consumers who may be willing to pay higher price for the commodity than to go without it.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "2 Marks Question" from Market Equilibrium→Market Equilibrium — all question types→Economics STD 12 Humanities & Commerce question papers→Rajasthan Board STD 12 Humanities & Commerce question papers→Rajasthan Board question paper generator→

Similar questions

Explain the problem of 'How to produce'?###Explain the central problem of “Choice of technique”.###Explain the central problem of 'how to produce'.

Quantity demanded of a commodity rises by 6 units, when its price falls by 1 per unit. Its Price Elasticity of Demand is (-) 1. If the price before the change was ₹ 20 per unit, calculate quantity demanded at this price.

Define capital goods.

In order to encourage tourism in Goa, Indian Airlines reduces the air fare to Goa. How will it affect market demand curve for air travel to Goa?

Why price remains unaffected when supply curve is perfectly elastic and demand curve shifts?

Giving reason, classify the into stock or flow.
Business capital of business.

As a result of increase in price by 20%, the quantity demanded decreases by 40%. Comment on PED.

The market demand for a good at ₹ 4 per unit is 100 units. The price rises and as a result its market demand falls to 75 units. Find out the new price if the price elasticity of demand of that good is (-)1.

From the following data calculate 'gross value added at factor cost':

		(Rs. in lakhs)
1	Net indirect tax	20
2	Purchase of intermediate products	120
3	Purchase of machines	300
4	Sales	250
5	Consumption of fixed capital	20
6	Change in stock	30

PES of a commodity is 5. a producer sells 500 units of a good at a price of ₹ 5 per unit. How much will he be willing to sell at the price of ₹ 6 per unit?