Blog entry #2

Why do price ceilings cause shortages?  What is a black market and why might it alleviate shortages?

Price ceilings cause shortages because when the price is low, people will buy more. If gas is $2.00 more people will want to buy it and buy as much as they can. The black market are illegal market that are not controlled by the government. Black markets can alleviate shortages because if people can not get their product on the regular market, they can sometimes buy their products on the black market for a higher price.