Economy, asked by apeksha35in, 6 months ago

How black marketing lead to price rise. Explain

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Answered by sonalipoojri77
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How to determine black marketing?

Markets Commodities

Shyamal Gupta

Updated on November 25, 2017

BL25_black market.jpg

BL25_black market.jpg

Tags:economic offence commodities market

In a market-driven economy, it is difficult to determine whether the price that is being charged is black-marketing

Recently, the Chief Minister of Bihar, Jitan Ram Manjhi, stirred up a controversy when he said that hoarding and black marketing of goods by small traders will not be treated as a crime. He may have been politically incorrect yet he was logically correct.

The hoarding and black marketing by small traders have no material impact on the demand and supply of goods in the market as the quantity of goods being hoarded by these small traders are insignificant.

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