Question

If a good is subject to a binding price floor and someone purchases it on the black market, what would he or she expect to happen to the price over time

Answer 1

Answer:

The surplus of the goods will rise, meaning that the availability of the such good will increase over time as both the supply and demand curves become more elastic.

Explanation:

Due to the presence of the black market, people are going to buy it from the black market at a lower cost, thus the availability will rise and the total surplus will rise due to market equilibrium.