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WAEC Economics 2017 Objective — Question 15

Question 15 of 50 from the West African Examinations Council (WAEC) Economics 2017 Objective paper, with the correct answer and a full explanation.

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Parallel markets are usually the result of

  • A. A. excess supply
  • B. B. the activities of rich individuals
  • C. C. price legislationCorrect
  • D. D. inadequate information

Explanation

When unwanted price is legislated, producers form parallel markets with some consumers.

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