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Question
Lets say that Lewis has a friend who was caught illegally buying a good on the black market. When the judge asks him to describe his friends motivation as a buyer, which of the following would most likely be his reply?
a. My friend bought the good on the black market because a binding price floor had created a shortage in the legal market and my friend really needed the good.
b. My friend bought the good on the black market because a price ceiling caused the price to be lower on the black market.
c. My friend bought the good on the black market because a nonbinding price floor had created a shortage on the legal market and my friend really needed the good.
d. My friend bought the good on the black market because a binding price floor made the good too expensive to purchase on the legal market and it was cheaper on the black market.
e. My friend bought the good on the black market because a nonbinding price floor made the good too expensive to purchase on the legal market and it was cheaper on the black market.
Answer
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