"Black marketing is a consequence of Government intervention ". Comment.
Dear student
yes,black marketing is a consequence of government intervention.when government set maximum price of any product or commodity below its market price.(market price where demand and supply equal such that equilibrium price).In this case,supplier does not want to sell his products in the market as his profit get reduced by selling at the price which is set by the government.so, this leads to shortage of supply or black marketing.
Regards
yes,black marketing is a consequence of government intervention.when government set maximum price of any product or commodity below its market price.(market price where demand and supply equal such that equilibrium price).In this case,supplier does not want to sell his products in the market as his profit get reduced by selling at the price which is set by the government.so, this leads to shortage of supply or black marketing.
Regards