Black Market Economics - What Drives the Underground Economy?: Control The Price

The video discusses the effects of legalizing and taxing products like tobacco, highlighting how such measures can alleviate social issues but also create opportunities for black markets. It explains how price interventions, such as price ceilings, can disrupt market equilibrium, leading to shortages and the formation of black markets. The video uses examples like tobacco and oil to illustrate these economic concepts, emphasizing the unintended consequences of government policies on market dynamics.

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