What are the economic effects of Black marketing?
The shift in supply
and demand causes the quantity consumed of the black market good to
decrease, while the price rises. If the demand side effects dominate,
there will be a drop in quantity consumed, but there will also see a
corresponding drop in price. However, this does not typically happen in a black
market. Money goes
in and out of the black market, so it does impact the real economy. One of the most significant ways is through employment. ...
Depending on the goods and services, the black market can also impact supply and
demand for an individual firm. There are two good examples of this impact. A black
market is economic
activity that takes place outside government-sanctioned channels. Black
market transactions
usually occur “under the table” to let participants avoid government price
controls or taxes
The shift in supply and demand causes the quantity consumed of the black market good to decrease, while the price rises. If the demand side effects dominate, there will be a drop in quantity consumed, but there will also see a corresponding drop in price. However, this does not typically happen in a black market. Money goes in and out of the black market, so it does impact the real economy. One of the most significant ways is through employment. ... Depending on the goods and services, the black market can also impact supply and demand for an individual firm. There are two good examples of this impact. A black market is economic activity that takes place outside government-sanctioned channels. Black market transactions usually occur “under the table” to let participants avoid government price controls or taxes
