What will an individual do differently as a seller in the black market in the long...

What will an individual do differently as a seller in the black market in the long run?

A.He or she will substitute away from producing the product.

B.He or she will substitute toward producing the product.

C.When there exists a binding price floor, he or she will be able to sell the good at a higher price.

D.When there exists a binding price ceiling, he or she will be able to sell the good at a lower price.

E.What he or she does as a seller in the long run will be no different from what he or she does in the short run.

Solutions

Expert Solution

A.He or she will substitute away from producing the product.

Explanation: A seller disposes the surplus product in the black market and in the long-run the seller would substitute away from producing the product.

Rahul Sunny answered 1 year ago

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